GrainCorp purchased 10% stakes of Five Star Flour Mills
13 August 20142 min reading
Australia-based GrainCorp announced that it has purchased 10% stakes of Five Star Flour Mills that is one of the leading flour mills of Egypt.
GrainCorp announced that it has purchased a 10% equity stake of Five Star Flour Mills that is the leading flour mills of Egypt. GrainCorp’s stake has a value of approximately AUD$10 million and this amount will be funded from existing cash reserves. The purchased stakes provide GrainCorp the right to appoint a director to Five Star’s Board.
Executive Chairman and Interim CEO of GrainCorp, Mr. Don Taylor, said there was a strong strategic rationale for building upon GrainCorp’s relationship with one of its largest international customers and he added, “We have been working in close partnership with the Management team at Five Star Flour Mills over a number of years, and have been in discussions for some time about how we can strengthen our relationship for the benefit of both our companies and the growers who use our network.”
Chairman& Managing Director of Five Star Flour Mills, Mr. Mahmoud el Shorbagi said the following on the subject: “We are very pleased to consolidate our positive relationship with GrainCorp and to have our supplier of choice firmly on board. We have proudly built our business around Australian wheat in particular and are a major buyer of the high quality hard, white wheat grown in eastern Australia. I have visited Australia myself on several occasions and have always been very impressed by the dedication to quality by grain growers and GrainCorp.”
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