Archer Daniels Midland Company Exercises Right To Convert Debentures For Shares Of Agricore United
CHICAGO--(BUSINESS WIRE)-- Archer Daniels Midland Company announced that its wholly-owned subsidiary, ADM Agri-Industries Company, has exercised its right on January 8, 2007 to convert CDN $45 million principal amount of 9% Convertible Unsecured Subordinated Debentures due November 30, 2007 (“Debentures”) of United Grain Growers Limited, carrying on business as Agricore United (“AU”), at the conversion rate of 133.3333 limited voting common shares of AU for each CDN $1,000 principal amount of Debentures so converted. As a result of this conversion of Debentures, ADM Agri-Industries Company will acquire 5,999,998 limited voting common shares of AU on or about January 17, 2007.
ADM Agri-Industries Company has exercised this right to convert Debentures as a result of AU’s previously announced intention to fully redeem all of its outstanding Debentures on January 10, 2007 in exchange for limited voting common shares of AU (the “Redemption”).
Before giving effect to this conversion of Debentures by ADM Agri-Industries Company, and as of October 31, 2006, ADM Agri-Industries Company beneficially owned 10,634,269 limited voting common shares of AU, representing approximately 23.40% of AU’s outstanding limited voting common shares. Following this conversion of Debentures by ADM Agri-Industries Company, and assuming that the other Debenture holders convert their Debentures in full prior to the date of Redemption, the 5,999,998 limited voting common shares of AU will represent approximately 10.09% of AU’s outstanding limited voting common shares and ADM Agri-Industries Company will beneficially own an aggregate of 16,634,267 limited voting common shares of AU, representing approximately 27.98% of the outstanding limited voting common shares of AU.
Archer Daniels Midland Company has no current intention to acquire additional limited voting common shares or other securities of AU; however, it reserves the right to do so pursuant to its existing contractual pre-emptive right and standstill arrangements with AU.
For further information (including obtaining a copy of the report filed with the Canadian securities regulatory authorities in respect of which this news release relates), please contact:
ADM Media Relations