All I can provide is the newsprint reference, page D11.
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So much focus on Agria and really, it will be like George Kerr being the weak holder of Heartland shares.
Sure it resulted in Heartland shares being sold at a discount to the market the time when George was forced to sell. It is clear the market was anticipating a selldown. However, most of the stock went to well connected parties and the stock has recovered very well after the exit of George.
New Hope and Ngai Tahu will be rubbing their hands in glee as they wait for the ripen fruit of PGW to fall into their laps from Agria. Just like Tomlinson and Carter with Heartland.
I see the world is seeing to see the real strategic value embedded in companies that help feed the world ... companies that do something really tangible - unlike those institutions that dream up paper tranactions that make them zillions without creating anything of substance
Graincorp in OZ now recognised as being 'valuable' as the world still needs to eat no matter what happens ..... maybe PGW has some real strategic assets that the world could be interested in ... only the seeds bit cause the rest of the organisation is only a services company (pity)
http://dealbook.nytimes.com/2012/10/...tralian-rival/
The Archer Daniels Midland Company has bid $2.76 billion for an Australian rival, GrainCorp, as the agricultural giant seeks to bulk up its global operations.
GrainCorp, which disclosed the offer in a press release on Monday in Australia, said that Archer Daniels had offered 11.75 Australian dollars a share. That’s a 33 percent premium to the company’s Friday closing price.
Last week, Archer Daniels said that it had expanded its stake in GrainCorp to 14.9 percent from 4.9 percent. (The move was done through equity derivatives.)
Archer Daniels added that it wanted to hold talks about buying the Australian company in an all-cash offer. The move, according to the American food processor and commodities trader, was prompted by its a plan to expand its agricultural process and oilseeds businesses internationally.
“GrainCorp is a well-managed company, and together with ADM would be better positioned to connect Australia’s farmers with growing global demand for crops and food, particularly in Asia and the Middle East,” Patricia Woertz, Archer Daniels’ chairman and chief executive, said in a statement at the time.
GrainCorp said that it is reviewing the proposal but hasn’t yet come to a decision about the offer. It is being advised by Credit Suisse, Greenhill & Company and the law firm Gilbert & Tobin.
" Archer Daniels Offers $2.8 Billion for Australia’s GrainCorp "..
That puts PGW into the minnow area..
Most of the players in this scenario are throwing Sprats to catch mackerals.. .
" There's New Hope, Ngai Tahu, Agrium etc waiting in the wings. "
Ha.... They are just " Berley " ..... ..
Yes there is a dollar to be made IMHO.. .. If watched and watched.. and.......
Interesting times ..
http://www.fool.com.au/2012/10/inves...tyholnk3030001
As we mentioned back in August, global grain demand is expected to grow by 1 billion metric tonnes or 50%, due to population growth, and Graincorp stands to benefit enormously from that fact.
The world’s population is expected to hit 9 billion people by 2050 – that’s a lot of mouths to feed.
Today’s takeover offer for one of Australia’s last listed agricultural companies, Graincorp Limited (ASX: GNC) should come as no shock then. The opportunities for companies involved in farming and food production are huge. The fact that Graincorp’s share price has surged well past the offer price of $11.75, suggests investors know how valuable the company is, and either expect a higher offer to come, or another bidder, which could trigger a bidding war.
As we mentioned back in August, global grain demand is expected to grow by 1 billion metric tonnes or 50%, due to population growth, and Graincorp stands to benefit enormously from that fact.
The large size of Australia and low population per square metre, means the country is well suited for agriculture, which requires large amounts of land for growing crops, raising sheep, cattle and other animals. Well suited, yes. Perfect? No. Extreme weather conditions mean we have severe droughts and floods, which can wreak havoc on the farming industry.
ANZ recently released a report it had commissioned by Port Jackson Partners suggesting rising food demand could boost Australia’s and New Zealand’s agricultural exports by around $2.8 trillion by 2050. Demand is being driven by Asia’s growing population and expanding middle class, who can afford to eat more grain-intensive food, such as meat.
But cashing in on the boom in food demand is going to be difficult, according to the report. Australia’s agricultural industries have gone backwards, and needs an estimated $1 trillion of additional investment to kick start declining productivity growth. An aging rural population – the average age of an Australasian farmer is in their mid-50s – rising productivity costs, constraints from natural resources and competition for land could see newer agricultural powers, like Brazil and Indonesia elbow Australia out of the prize.
International companies have already recognised the potential – witness the Graincorp takeover, the Australian Wheat Board accepted a takeover bid from Canadian agricultural giant, Agrium in 2010 and recent buying of Australian sugar assets by Chinese companies. Now it’s up to Australians to come to the same conclusion.
For those Foolish investors looking for the next ‘Graincorp’, you might want to take a closer look at dairy company, Bega Cheese Limited (ASX: BGA), salmon farmer Tassal Group (ASX: TGR) or agricultural investment company PrimeAg Australia Limited (ASX: PAG).
If you only invest in one company this year, make it our “Top Stock for 2012-13”. Operating in two hot markets — one set to double by 2012, the other predicted to grow 5x over the next five years — this stock is a solid growth play that also boasts strong recurring revenue, zero debt, and lots of cash. Get its name and full research case in this brand-new FREE report.
Onlt thing wrong with putting PGW in the same category as Graincorp and cheese factories and salmon farmers is that PGW don't actually produce much food .... theya re more a services company .... but they do have a seeds businessof sort of there is ever goign to be any riches in PGW that has to be the platform