GrainCorp (GNC) to demerge Malt business, shares trade higher
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GrainCorp (GNC) $9.50 as at 4/04/2019
Event
Grain trader GrainCorp has released a review into the business and commenced plans to demerger the malt distribution business, the MaltCo expected to be listed by years end. Shares traded higher today while the broader market was almost 1% lower.
GrainCorp has been in the news plenty lately, copping a takeover offer from LTAP late last year, and has since been rumoured to be in talks with a number of players for parts of the business culminating with the sale of its liquid terminal unit last month. GNC noted it is still in talks with LATP and other parties over different parts of the business.
MaltCo will process and distribute process barley throughout the world, touted as the world’s fourth largest independent supplier.
The remaining business, called New GrainCorp, will be left to focus on grains, oil seeds, edible oils and feed with operations in nearly every continent. The company believes the demerger will allow GrainCorp to continue to strip costs out and simplify the business substantially.
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