ADM has sold its stake in GrainCorp — the Australian parent company of Canada Malting and new Canadian joint venture GrainsConnect.
The deal sees ADM sell its 19.9 percent ownership in Australia’s largest grain company to Swiss underwriters UBS for A$387 million (approximately C$380 million).
“This transaction will allow us to further reduce our invested capital, and it will provide cash that we can redeploy to higher-return investments as we continue to execute our balanced capital-allocation framework,” said ADM Chairman and CEO Juan Luciano.
GrainCorp owns Calgary-based Canada Malting, with its network of handling and processing facilities across the country. GrainCorp is also a partner with Japanese co-op Zen-Noh in GrainsConnect, which is investing C$120 million (C$30 million each, plus $60 million in debt financing) to build four grain terminals in Alberta and Saskatchewan into 2018.
ADM tried to buy GrainCorp for A$2.8 billion in 2013, but the deal was blocked by the Australian government.