Gruma Buys Stake from ADM

Mexico’s Gruma has purchased a $450m package of its shares and shares in its subsidiaries from Archer Daniels Midland (ADM), it says. The deal is the result of Gruma acting on a right of first refusal to block an offer made last month by Mexican businessman Fernando Chico Pardo. The package includes a 23.2% stake in Gruma, as well as minority positions in its units Azteca Milling, Molinera de Mexico and three Venezuelan units. An additional $60m could be paid to ADM depending on the share price performance as well as other factors over the next 3.5 years. To fund the purchase, Gruma has signed a 1-year $400m bridge loan led by Goldman Sachs, and a long-term revolver from Bank of America Merrill Lynch. It plans to refinance the debt within a year. Bank of America Merrill Lynch advised ADM, which has been unloading assets in order to pursue a AUD2.7bn ($2.8bn) offer for Australia’s GrainCorp.