The board of grain handling giant GrainCorp says it will continue its conversation with takeover suitor Long-Term Asset Partners (LTAP), but has reiterated no binding offer has yet been made.
GrainCorp was targeted in November last year with an all-cash takeover bid was lobbed by LTAP, which valued the ASX-listed grain handler at $2.38 billion.
It said in December it was still in talks with LTAP, and would be able to give shareholders a clearer picture at its Annual General Meeting in February 2019.
That AGM took place on Wednesday morning, but GrainCorp chairman Graham Bradley had little to say about the takeover bid.
“GrainCorp continues to engage constructively with LTAP to assist them as they undertake due diligence and seek to develop a formal, binding offer capable of consideration and response by your board,” Bradley told shareholders.
“I have spoken personally with LTAP’s chairman in advance of this meeting and the engagement between GrainCorp and LTAP remains active. As I report to you today, LTAP’s proposal remains indicative and non-binding.”
Bradley said the company had been approached by a number of other parties who had expressed an interest in buying parts of the company’s portfolio.
He said the interest had come in the wake of GrainCorp’s own portfolio review, which it announced late in 2018 following the LTAP bid.
But he said he was not able to disclose any further information, about the review or the offers.
“GrainCorp’s board wishes to ensure these discussions are provided the opportunity to deliver full value for shareholders and we continue to look at all options in order to achieve that,” Bradley said. “I commit to providing further updates as and when these discussions reach fruition.”
GrainCorp’s balance sheet suffered from drought conditions in Australia’s east in its 2018 financial calendar (the 12 months ending September 30, 2018).
For the year ended September 30, 2018, GrainCorp’s EBITDA was $269 million, down $121 million year-on-year. Underlying NPAT was $71 million, half what it was a year prior.