12 September 2011 15:13 [Source: ICIS news]
LONDON (ICIS)--Archer Daniels Midland (ADM) has increased its bid price for Polish biodiesel producer Elstar Oils after its original bid was challenged by a higher offer from fellow American company Bunge, ADM said on Monday.
Illinois-based ADM, the world's largest grain producer and an agriprocessor that turn crops into renewable products for food, animal feed, chemical and energy uses, increased its offer to zlotych (Zl) 6.50 ($2.07, €1.52) per share – valuing the producer at around Zl 300m – from Zl 5.50 per share.
This is still lower than the Bunge offer. However, ADM has signed a deal with Stanislaw Rosnowski, under which the owner of a 50.9% stake in Elstar has agreed not to sell his shares to other bidders, it added.
Bunge's offer for Elstar, also a producer of edible oils, amounted to Zl 6.75 per share, with the agribusiness and biofuel producer looking to purchase a maximum 80% of the stock in Elstar.
In late August, the Polish National Chamber of Biofuels welcomed ADM's proposed acquisition of Elstar Oils, saying it could prove a much-needed shot in the arm for the biofuels industry in Poland that is stymied by a lack of government regulatory assistance.
Elstar includes the Biopaliwa subsidiary that operates rapeseed crushing and refining facilities in Czernin, in the rapeseed growing region of Pomerania in northern Poland, and a fully automated biodiesel facility in nearby Malbork.
It has the capacity to crush 400,000 tonnes/year of rapeseed.
($1 = Zl 3.14, €1 = Zl 4.28)
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