Archer Daniels Midland (NYSE: ADM ) announced today that it has increased its stake in GrainCorp from 14.9% to 19.9% and raised its offer to buy out the Australian grain processor to $12.73 per share.
Current holders of GrainCorp shares would furthermore keep the $0.365-per-share dividend that GrainCorp announced on Nov. 15. ADM describes its revised proposal as approximately an $0.835-per-share improvement over its Oct. 19 proposal to acquire the shares. GrainCorp's board rejected that offer as "materially undervaluing" the company.
ADM said today it has received approval from the Australian Foreign Investment Review Board to acquire up to 19.9% of GrainCorp shares. It has delivered to GrainCorp a non-binding proposal to purchase all remaining shares of GrainCorp for a purchase price of $12.73 per share.
GrainCorp's board has not yet responded to the improved proposal.