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.