Agrium Inc. has submitted a fully financed proposal to acquire AWB Ltd. A$1.50 per AWB share. The proposal represents a 57 percent premium to the trading price of A$0.955 on July 29, 2010 (Australia time), which was just prior to the Graincorp merger announcement. Agrium’s proposal was sent to the AWB Board on August 14, 2010 (Australia time) and represents attractive value and cash certainty for AWB’s shareholders.
Agrium is in discussions with AWB with the intention of agreeing to a proposal that the AWB Board would recommend to its shareholders.
“The proposed transaction with AWB would continue Agrium’s strategy of growing its retail business," says Agrium president and CEO Mike Wilson. "Agrium sees significant potential to enhance the product and service offerings to the Australian and New Zealand grower, particularly through AWB’s retail Landmark Rural Services division, by utilizing Agrium’s international fertilizer and crop protection sourcing capabilities, while supporting further growth within each division of AWB.”