BLOG

$1.8 billion-bid for Australia’s GrainCorp

25 January 20192 min reading

Australia’s largest listed bulk grain handler GrainCorp said it received $1.8 billion takeover offer. The offer comes as a drought wilts crops across Australia’s east coast, limiting GrainCorp’s ability to earn revenue from international grain trading.

A group of Australian investors backed by Goldman Sachs Group Inc. offered $1.8 billion to take control of GrainCorp, Australia’s largest listed bulk grain handler. The offer comes as GrainCorp’s shares were trading near two-year lows amid a drought that’s slashed the amount of grain being delivered to its terminals this season. A drought-ravaged east coast cropping landscape and higher energy costs shrivelled GrainCorp’s full-year balance sheet in 2017/18, with profit dropping 43.7 per cent to $70.5 million. Last month GrainCorp cut about 50 jobs in middle management and administration on forecasts of a severely reduced summer harvest, with further cuts expected as a bleak 2019 looms. The newly formed asset manager, led by prominent businessman Tony Shepherd and Lance Hockridge, the former chief executive officer of rail freight company Aurizon Holdings Ltd., offered A$10.42 a share in cash. That’s 43 percent more than GrainCorp’s last closing price. GrainCorp, which is the biggest crop handler in eastern Australia and is also a significant supplier of malt, says it hasn’t formed a view on the price. It wants more information on the equity investors underpinning the bid. The Australian government had blocked a A$2.8 billion takeover of GrainCorp by U.S. agribusiness giant Archer Daniels Midland Co in 2013 following pressure from grain growers.

Articles in News Category
12 April 20183 min reading

Tehran to exports more flour to Iraq via Russia wheat deal

Iran has reached a deal to buy wheat from Russia, Kazakhstan over 5 years. Russian grain sale to Ir...

11 October 20183 min reading

Biggest wheat importer may turn to hedging after price spike

Egypt, the world’s biggest wheat importer, is considering price hedging to cope with a sudden spike...

25 June 20206 min reading

Overwhelming response to Bühler Virtual World

Due to the positive response and over-subscription of virtual meetings, Bühler kept the Bühler Vi...