Processors merge
with Archer-Daniels-Midland Company in the US
Minnesota Corn Processors, LLC has announced a merger agreement with Archer-Daniels-Midland Company in the US.
The agreement is structured as a cash-for-stock deal whereby ADM will pay to MCP shareholders a price of $2.90 for each Class A unit upon the closing of the merger. The transaction will be accomplished by MCP merging with a subsidiary of ADM.
A proxy statement soliciting votes regarding the proposed merger is tentatively scheduled to be mailed out toward the end of July with a shareholder vote in late August. These dates, however, are not yet confirmed.
"MCP's board of directors have carefully analysed this transaction and have concluded that this is an attractive offer for our shareholders. The board of directors recommends that the shareholders vote in favour of the transaction," said Jerry Jacoby, Chairman of the board of directors of MCP.
"This proposed transaction represents the recognition of the value created by MCP in the last several years, particularly since the large financial losses in 1996 and 1997," said L. Dan Thompson, MCP President and Chief Executive Officer. "The price of $2.90 per Class A unit represents a very significant premium over the recent market price of the Class A units which have been trading around $1.00."
The transaction remains subject to a number of conditions, including approval from MCP shareholders and appropriate regulatory agencies.
Informational meetings are tentatively scheduled for the week of August 12, 2002 to provide MCP shareholders the opportunity to ask questions regarding the merger. When these dates are finalised, MCP will send out notices of the time, place and date.
Minnesota Corn Processors, LLC is a corn wet-miller with refineries in Marshall, MN and Columbus, NE. The Company produces high-quality corn sweeteners and starch products for sale into the beverage and food industries, and owns and operates a nationwide network of 19 corn sweetener distribution terminals. In addition, the Company produces starches for sale into the paper and corrugating industries, ethanol, feed products and road de-icers.
