Skip to main content

Advertisement

Advertisement

Business

Archer Daniels Midland to cut stake in Wilmar, sell shares for US$500 million

Archer Daniels Midland to cut stake in Wilmar, sell shares for US$500 million

FILE PHOTO: The Archer Daniels Midland Co. (ADM) logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018. REUTERS/Brendan McDermid/File Photo

SINGAPORE: Grain trader Archer Daniels Midland Co (ADM) said on Wednesday (Aug 19) it plans to sell shares and bonds in Singapore-based Wilmar International with a combined value of US$800 million.

ADM, which is one of Wilmar's largest shareholders, added that it expects to retain at least a 20 per cent stake in the agribusiness firm.

The company had a 24.6 per cent effective stake in Wilmar as of Mar 4, according to Refinitiv.

Two of ADM's units will undertake the proposed sale of Wilmar's ordinary shares for about US$500 million pursuant to a secondary block trade agreement with a syndicate of managers, the Chicago-based company said.

ADM added that unit ADM Ag Holding also aims to conduct an offering of about US$300 million worth of bonds outside the United States.

ADM expects to use the net proceeds from the block trade for meeting its working capital requirements, funding its capital expenditures and a possible buyback.

Wilmar did not immediately respond to a request for comment.

Source: Reuters

Advertisement

Also worth reading

Advertisement