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Australia's CBH says consortium bidders refuse to provide requested information

Published 26/02/2016, 06:18 pm
© Reuters.  Australia's CBH says consortium bidders refuse to provide requested information
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By Colin Packham

SYDNEY, Feb 26 (Reuters) - Co-operative Bulk Handling Ltd (CBH), Australia's largest wheat exporter, said on Friday a consortium that has proposed acquiring and listing the Western Australian bulk grain handler has refused to provide further information about its plan.

CBH, which said last week the proposal lacked detail, is deciding whether to put forward the plan to its shareholders or reject it outright. rival GrainCorp Ltd GNC.AX last week joined the consortium, that aims to buy and list CBH, a deal that could be valued at up to $2.1 billion.

The consortium is being led by Australian Grains Champion (AGC), a grower-led initiative that includes farmers and some former directors of CBH.

CBH said this week it would request further information on the deal, but said in a statement that Australian Grains Champion (AGC) had refused to provide more information.

"The CBH Board will continue to assess the proposal with the information AGC has previously provided," said CBH in a statement.

AGC has proposed it take ownership of CBH from its 4,200 farmer owners, who will receive shares in consortium, along with a A$600 million ($433.26 million) sweetener.

GrainCorp is a cornerstone investor with a commitment of as much as A$600 million, which would be transferred to an equity stake in CBH once it was listed. This investment would give GrainCorp a 20 percent stake in CBH if it was valued at A$3 billion. raised several concerns about consortium offer at its annual general meeting in Perth this week, including the possibility that GrainCorp could eventually acquire CBH.

($1 = 1.3848 Australian dollars)

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