KUALA LUMPUR, Aug 27 — ADM has announced completion of the second of its two previously announced capital raising transactions, namely the issuance of US$300 million aggregate principal amount of zero-coupon bonds, due in 2023 and exchangeable into Wilmar shares. (US$1 = RM4.167)
When combined with ADM’s secondary block trade of Wilmar shares, which settled on Aug 24, ADM has raised approximately US$850 million of capital, according to a statement.
ADM expects to use the net proceeds from the transactions for general corporate purposes, including potential bolt-on acquisitions; the opportunistic repurchase of ADM shares, which has already begun; and the retirement of higher coupon long-term debt commensurate to the exchangeable bond to ensure the bond transaction is leverage-neutral.
“We’re committed to continuing to expand our leadership and innovation across the value chain, for the benefit of our customers, partners and shareholders,” said ADM Chairman and Chief Executive Officer, Juan Luciano.
ADM expects a book gain of approximately US$0.12 per share on the block trade in the third quarter; the gain will be treated as a special item for adjusted EPS purposes.
The company does not anticipate any material book or cash tax impacts. ADM’s investment in Wilmar after the transaction represents a market value of approximately US$4.4 billion; the company will continue to account for it on an equity basis.
Details at www.adm.com.
-- BERNAMA
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