The board of agribusiness Graincorp Limited
(ASX:GNC) has again unanimously backed a sweetened $3.4 billion takeover bid from US-based food processing giant Archer Daniels Midland.
ADM already owns 19.85 per cent of the Australian-listed grain handler and has offered $13.20 per share and permitted dividends of $1 per share to take full control.
Independent expert Grant Samuel says it would be imprudent for shareholders to reject the bid, after conceding a higher alternative offer is possible but relatively unlikely.
The takeover is still waiting on the green light from Australia’s Foreign Investment Review Board, the Australian Competition and Consumer Commission and international regulatory authorities.
ADM’s offer closes on August 31, 2013 and a minimum of 50.1 per cent of GrainCorp shareholders need to back the deal before it goes ahead.
Graincorp’s net profit narrowed to $88.2 million in the first half the 2013 financial year.
