Adecoagro Board Approves Tether's Majority Stake Bid, Eyes Long-Term Growth

Adecoagro S.A. AGRO shares surged on Thursday following the announcement of a deal with Tether Investments, under which Tether will launch a tender offer to acquire a majority stake in the South American agribusiness at $12.41 per share.

The offer includes up to 49.596 million common shares, representing approximately 70% of the outstanding shares when added to the shares already owned by Tether.

The agreement, which Adecoagro’s Board has unanimously approved of the Directors, is contingent on Tether acquiring at least 51% of the fully diluted shares through the offer.

Adecoagro CEO and Co-Founder Mariano Bosch expressed strong support for the partnership, emphasizing the shared vision between the two companies. “I am very excited about this transaction and the opportunity to have a significant shareholder like Tether, who shares the entrepreneurial spirit that led us to create Adecoagro 23 years ago and that continues to be present in our day-to-day decisions,” said Bosch.

Emilio Gnecco, Adecoagro’s Chief Financial Officer, added, “The work we have done over the past years have led to deliver consistent results and better positioned us for long-term sustainable growth. We are at a point where we have become a solid platform from which we can expand our current businesses and potential new ones. The incorporation of a shareholder like Tether will allow us to pursue a more ambitious growth plan.”

In February, Adecoagro announced it had received a non-binding proposal from Tether Investments to acquire a controlling 51% stake through a tender offer at $12.41 per share. Tether already owns 19.4% of Adecoagro and submitted the proposal on February 14. The company’s Board of Directors met on February 16 to evaluate the offer.

Price Action: AGRO shares traded higher by 6.82% at $11.91 premarket at last check Thursday.

Photo via Shutterstock.