InvestSMART

Graincorp Limited (ASX:GNC)

ALERT: Price-sensitive ASX Announcement for GNC
Current share price for GNC : $5.660 -2.72 (-32.46%)+
Announcement
Release
17 Dec 2025 8:43AM
Price at Release
$8.380
Full Release
download
Summary
GrainCorp Limited announced the sale of GrainsConnect Canada to Parrish & Heimbecker, Limited, in partnership with Zen-Noh Grain Corporation. The strategic decision came after a review due to the challenging financial performance of GrainsConnect. Valued at C$150 million, the transaction is expected to result in a loss of approximately A$5-10 million for GrainCorp but will not affect its through-the-cycle EBITDA. This move allows GrainCorp to redirect efforts toward alternative value-creating opportunities, with the transaction expected to conclude in the first half of 2026. Despite the sale, GrainCorp's Canadian marketing offices will remain operational. Additionally, GrainCorp’s FY26 receival volumes are projected between 11.0 and 12.0 million tonnes, with a strong focus on cost management amidst lower year-on-year ECA crop volumes.
Key Points
  • GrainCorp has announced the sale of GrainsConnect Canada to Parrish & Heimbecker, Limited.
  • A binding agreement was reached with Zen-Noh Grain Corporation, the joint venture partner.
  • The sale follows a strategic review due to challenging financial performance by GrainsConnect.
  • The transaction values GrainsConnect at C$150 million on a cash-free, debt-free basis.
  • GrainCorp is expected to recognize a loss on sale of approximately A$5-10 million.
  • The sale allows GrainCorp to focus on alternative value-creating opportunities.
  • GrainCorp's Canadian marketing offices in Winnipeg will continue operations.
  • Completion of the transaction is expected in the first half of 2026.
  • GrainCorp's FY26 receival volumes are estimated at 11.0 – 12.0 million tonnes.
  • The company is focusing on cost management due to lower ECA crop volumes.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.