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
217/424-5413
media@adm.com