Long-Term Asset Partners pulls $2.4 billion bid for Graincorp
Long-Term Asset Partners has withdrawn a $2.4 billion offer for Australian agribusiness Graincorp, just days before a deadline for a $350 million sale of part of Graincorp to another party.
Long-Term Asset Partners (LTAP) confirmed on Monday it had withdrawn its non-binding, indicative proposal to buy Graincorp, despite months of due diligence and the acquisition of about 4.2 per cent of Graincorp's shares.
LTAP chairman Tony Shepherd said LTAP had been a very serious bidder with significant Australian and international backing.
"Had due diligence supported our operational assumptions, we are confident we would have turned the LTAP proposal into a binding offer as contemplated," Mr Shepherd said.
"Graincorp provides a valuable service to the nation's grain growers and we wish them well," he said.
In a statement, LTAP said that before announcing its proposal in December, it had assembled an expert team "to assess Graincorp from outside".
In March, Graincorp unveiled a $350 million deal to sell its liquids terminals business. The deal was subject to certain conditions, including that Graincorp not enter into a change of control transaction before May 10, which effectively set an informal deadline for LTAP to confirm whether or not it would push ahead with its offer.