February 22, 2016

22/02/2016: GrainCorp joins Australian Grains Champion consortium

GrainCorp announced on 17 February it has agreed to join a consortium led by Australian Grains Champion and including HRL Morrison & Co, acting on behalf of underlying Australian superannuation investors.

Australian Grains Champion is proposing the commercialisation and potential listing of Co-operative Bulk Handling Ltd. Full details of the Proposal are available on the website HERE.  

Australian Grains Champion is a Western Australian grower-led initiative. Australian Grains Champion approached GrainCorp, inviting GrainCorp to support its Proposal as a cornerstone investor. Australian Grains Champion is presenting the Proposal to the Board of CBH with a request that it be put to CBH’s grower members.

The Proposal also provides a unique opportunity for GrainCorp to invest in CBH through its investment in Australian Grains Champion, and a pathway for GrainCorp to obtain a future equity interest in a publicly listed Australian Grains Champion as holding company of CBH. This investment creates substantial potential to enhance the alignment and strategic relationship between GrainCorp and CBH.

GrainCorp Managing Director and CEO Mr Mark Palmquist said: “We see enormous strategic merit in the Australian Grains Champion Proposal. Our willingness to support it is based on a view that the investment presents a compelling opportunity for Western Australian growers, while also delivering opportunity for CBH, GrainCorp shareholders and Australian agriculture more broadly.

“Importantly, the decision to proceed is ultimately one for Western Australian growers and we respect that process.

“Our proposed investment is a good strategic fit for GrainCorp, bearing in mind CBH’s complementary assets and capabilities. CBH is an excellent business with a strong position in Australian agriculture. GrainCorp is also a significant Australian agribusiness and, if we can support the growth of Australian agriculture, then we feel a responsibility to participate. We believe we offer significant value to CBH through our experience as a listed agribusiness, our complementary operations and grain processing capabilities.

“Our participation in this Proposal potentially gives us an opportunity to contribute to CBH’s growth and success in a meaningful way in the future.”

Visit the GrainCorp site HERE.

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