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ADM to absorb corn processor

12-Jul-2002

US Minnesota Corn Processors (MCP) announced on Thursday that it has signed a merger agreement with US grain giant Archer Daniels Midland (ADM). Under terms of the agreement MCP will merge with a subsidiary of ADM.

The agreement is structured as a cash-for-stock deal and ADM is set to pay MCP shareholders $2.90 (€2.94) for each Class A unit.

"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," he continued.

The transaction is still subject to regulatory approval.

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