Australian compound feed manufacturer Ridley Corporation is campaigning against GrainCorp’s hostile takeover offer, saying it is miserly and opportunistic.
GrainCorp’s offer in a share exchange valued Ridley’s shares at AU$ 1.39 when
it was made on May 16, or at AU$1.25 last Thursday just before the Bidder’s
Statement was lodged.
Ridley’s major shareholder, Investors Mutual, has
already made an agreement with GrainCorp that would deliver 19% of Ridley
Ridley chairman John Keniry said they could offer shareholders
better value by pursuing the restructure announced after a recent strategic
He said the offer undervalued Ridley shares and would expose
shareholders to the vagaries of fluctuating wheat harvests, which had recently
been affected by drought.
US-part also for sale
also decided to sell its North American interests, and “discovered” surplus land
worth about AU$80 million, which would be valued at 27¢ a share.
Bidder’s Statement, GrainCorp chairman Don Taylor said the offer for Ridley was
“consistent with GrainCorp’s vision to be Australasia’s leading handler and
supplier of agriproducts and bulk products”.
According to GrainCorp, a
merged entity would have a market capitalisation of more than $1