Tether is offering $12.41 a share to rise stake above 51%
Tether already owns approximately 20.2% of Adecoagro’s shares
Adecoagro SA said stablecoin issuer Tether Holdings SA de CV has submitted a proposal to acquire a majority stake in the South American agricultural and energy production firm, in a transaction valued at around $385 million.
Tether’s investments arm is offering $12.41 a share to increase its stake to above 51%, Luxembourg—headquartered Adecoagro said in a filing Tuesday. The offer is about a 27% premium to Adecoagro’s close share price on Friday. The stock jumped around 11% on Tuesday.
“This investment is part of Tether’s broader approach to allocating profits into strategic sectors such as financial technology, artificial intelligence, biotech, and energy,” Tether said in a statement.
Tether already owns approximately 20.2% of Adecoagro’s outstanding shares, according to a filing, which included an offer letter from Tether dated Feb. 14. The stablecoin issuer, which recently changed its headquarters to El Salvador, has spent more than $200 million on share purchases since last year, according to calculations by Blooomberg.
Adecoagro is a farming company in Argentina and Brazil, the agricultural powerhouses of South America, and is listed in New York. Its sugarcane operations in Brazil produce renewable ethanol that fuels transportation. In Argentina, where libertarian President Javier Milei has vowed to unleash the full force of the country’s farmers, the company grows crops and rice across some 650,000 acres and also produces dairy.
In its offer letter, Tether said Adecoagro’s profitability had “significantly declined” in recent quarters. It sought to establish an ongoing partnership with Adecoagro, noting that Tether’s “geographical footprint aligns well with Tether’s expanding presence in the region.”
“South America is one of USDT’s fastest growing markets, driven largely by demand from across Argentina and Brazil owing to economic instability, volatile national currencies and perennial battles with inflation,” Tether said in the letter. Tether would retain the company’s senior management upon acquisition, it added, as part of a new strategic plan for the business.
Stablecoins such as USDT are a crucial part of crypto markets that are increasingly being used to make payments and transfer money — both for legitimate and illicit purposes. Stablecoin use has been growing the fastest in countries such as Argentina that have been beset with inflation.
Other notable and recent deals for Tether include a stake in Juventus Football Club SpA and a major shareholding in German technology firm Northern Data AG. In December, it plowed $775 million into the US social media company Rumble Inc.
Adecoagro’s board of directors has decided to engage legal and financial advisers to help it evaluate the proposal, the firm said, following a meeting held on Sunday to discuss the terms of the bid. “The Board of Directors will respond in due course,” it added.
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇺🇸 eDairy News INGLÊS: https://whatsapp.com/channel/0029VaKsjzGDTkJyIN6hcP1K
