Australia’s Grain Corp announced it plans to restructure and split its business, spinning off its malting unit after drought has cut into earnings.
At the same time, the company said that it will continue to engage with potential buyers for either all or parts of the company, including Long-Term Asset Partners (LTAP), which made an offer last year of US$1.69 billion.
By splitting the company, Grain Corp believes the move will unlock significant value, resulting in separate units that will be better able to attract investors that have specific priorities.
After the spin off, the malting unit will be MaltCo, a free standing maltster that will rank fourth in the world with malting operations in the U.S, Canada, Australia, and Britain, serving the whisky, specialty malt, and craft beer industries. Meanwhile, the remaining GrainCorp will focus on grains and edible oils post-separation.
Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at email@example.com.