Graincorp says LTAP takeover bid not sufficiently certain

Company News

by Anna Napoli

Graincorp (ASX:GNC) says Long-Term Asset Partners (LTAP) $2.4 billion takeover proposal is not yet sufficiently certain, or in a form which would allow the board to make a recommendation to shareholders.

Earlier this month Graincorp received a non-binding takeover bid from Long-Term Asset Partners at a price of $10.42 a share.

Graincorp is providing Long-Term Asset Partners due diligence to enable the company to determine whether it can put forward a more certain proposal.

Graincorp says the LTAP proposal is subject to a number of conditions and involves a complex financing structure with significant leverage comprising $3.2 billion in acquisition facilities from Goldman Sachs and $400 million from Westbourne Capital.

The global agri-business says the proposal is just one of several potential strategic initiatives under evaluation.

Shares in Graincorp (ASX:GNC) are trading 0.8 per cent lower at $9.02.

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.