ADM ANNOUNCES PROPOSED SECONDARY BLOCK TRADE OF WILMAR ORDINARY SHARES

KUALA LUMPUR, Aug 21 -- ADM has announced that its wholly-owned subsidiaries ADM Ag Holding Limited (ADM Ag) and Archer Daniels Midland Asia-Pacific Limited propose to sell ordinary shares of Wilmar (the Shares) for an aggregate purchase price of approximately US$500 million. (US$1 = RM4.175)

According to a statement, this is pursuant to a secondary block trade agreement with a syndicate of managers (the Block Trade Agreement, and such sale, the Block Trade). 

The Shares to be sold pursuant to the Block Trade Agreement are being offered and sold in offshore transactions, in reliance on Regulation S (Regulation S) under the Securities Act of 1933.

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ADM expects to use the net proceeds from the Block Trade for general corporate purposes, which may include, without limitation, meeting working capital requirements, funding capital expenditures and possible acquisitions of, or investments in, businesses and assets, and acquiring outstanding shares of ADM common stock.

In the same statement, ADM also announced that ADM Ag proposes to conduct an offering (the Offering) of about US$300 million aggregate principal amount of Zero Coupon Exchangeable Bonds (the Bonds) outside of the United States to non-US persons, in reliance on Regulation S.

The net proceeds from the Offering will be used for general corporate purposes - same as the Block Trade net proceeds - as well as repaying indebtedness originally incurred for the general corporate purposes.

ADM expects that it will retain at least 20 per cent of the equity interest in Wilmar after giving effect to the Offering, including any subsequent exchange of Bonds and the Block Trade.

ADM can offer no assurance that the Offering or the Block Trade will be consummated. The completion of the Block Trade is not conditioned upon the closing of the Offering.

-- BERNAMA