Graincorp flags plan to demerge global malting business
Listed bulk grain handler Graincorp plans to demerge its global malting business by the end of this calendar year to create two independent ASX-listed agribusinesses.
"MaltCo" would focus on global malting and craft brewing distribution, while "New Graincorp" would be a domestic and international grain handling, storage, trading and processing business focused
on grains, oilseeds, pulses, edible oils and feeds.
Graincorp said in a statement on Thursday that it would continue to engage with parties that had expressed an interest in acquiring part or parts of its portfolio, in parallel with the demerger process.
Graincorp last year received a $2.4 billion indicative offer from the little-known Long Term Asset Partners (LTAP) consortium, and chairman Graham Bradley last month told the group's annual meeting that Graincorp had been approached by a "number of parties" that had expressed "serious interest" in purchasing part of the group’s portfolio of businesses.
"Graincorp has also engaged extensively with Long-Term Asset Partners Pty Ltd (LTAP), however, the company has received no recent definitive update from LTAP. The Graincorp board will assess any proposal(s) received from these parties with the objective of maximising value for shareholders," it said.
"As a result of these engagements, there remains potential for Graincorp, MaltCo or other portfolio businesses to be sold, potentially delivering a control premium that may deliver even greater value to shareholders."
The deal is subject to shareholder and other approvals.
More to come