ADM says it expects to use the net proceeds for its working capital requirements, capital expenditures, and a possible buyback.
Wilmar’s shares closed $4.86 on August 19, and opened 7.61% down at $4.49 when markets opened on August 20 following the news.
ADM, which is one of Wilmar’s largest shareholders, says it plans to retain a 20% stake in the group.
According to Refinitiv, ADM had a 24.6% stake in Wilmar as of March 4.
Update
At 12.15pm, Wilmar issued a statement via SGX with regard to the sale of shares by ADM.
The latter is selling 170.5 million Wilmar shares representing 2.68% of the total issued share capital of Wilmar, which have been priced and placed at $4.40 per share.
Wilmar also stressed that apart from the transactions mentioned by ADM, the group is not aware of other reasons for the volatility in its share price on August 20.
