Canada’s Agrium makes A$1.2-bn counter offer for Australia’s AWB
16 Aug 2010
Canada's agribusiness giant Agrium Inc has halted the plans of GrainCorp to become Australia's biggest wheat exporter by yesterday making an A$1.2 billion ($1.1 billion) in cash counter offer for AWB Ltd.
Agrium, a major retail supplier of agricultural products and services in North and South America, submitted a fully financed unsolicited proposal to acquire AWB at A$1.50 per AWB share, representing a 57 per cent premium to AWB closing price of A$0.955 on 29 July 2010.
Agrium's offer is A$345 million more than GrainCorp offer of A$855 million ($770 million) made on 31 July 2010. (See: GrainCorp to buy AWB to become Australia's largest wheat exporter)
Sydney-based GrainCorp had offered to issue one of its own share for every 5.75 AWB shares, a premium of 9 per cent to 28 July 2010 closing price, valuing each share at A$1.047 and the deal at A$855 million.
Agrium said that is in discussions with AWB to see that its proposal would be recommended by the AWB Board to its shareholders.
''The proposed transaction with AWB would continue Agrium's strategy of growing its retail business. Agrium sees significant potential to enhance the product and service offerings to the Australian and New Zealand grower, particularly through AWB's retail Landmark Rural Services division, by utilising Agrium's international fertilizer and crop protection sourcing capabilities, while supporting further growth within each division of AWB,'' said Agrium president and CEO Mike Wilson.