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Adecoagro and Tether Investments Form a Strategic Alliance

Introduction
In a significant move that marks a new chapter for the South American agricultural landscape, Adecoagro S.A., a prominent player in sustainable production, has entered a transaction agreement with Tether Investments S.A. de C.V. This partnership aims to enhance Adecoagro's operations in the realms of agriculture and renewable energy, positioning the company for ambitious growth and innovation.

Details of the Transaction

Under the agreement, Tether plans to initiate a tender offer to acquire up to 49,596,510 common shares of Adecoagro at a cash price of $12.41 per share. This acquisition is substantial, signifying Tether's intent to hold nearly 70% of the outstanding shares when combined with its current holdings. However, the completion of this transaction hinges on several conditions, including securing at least 51% of the total common shares on a fully diluted basis.

Mariano Bosch, the Co-Founder and CEO of Adecoagro, expressed his enthusiasm for the partnership, emphasizing the shared entrepreneurial spirit that has fueled Adecoagro's growth over the past 23 years. He noted that Tether's involvement would not only bring in capital but also align with the company's emphasis on adopting cutting-edge technology across its business segments. This technological advancement is pivotal for maintaining Adecoagro's low-cost strategy while expanding its capabilities in sustainable production.

Impact on Company Governance

The implications of this partnership extend beyond mere financials. The Adecoagro Board of Directors is anticipated to benefit from a blend of continuity and fresh perspectives, as some existing board members will remain while new directors from Tether will join. This infusion of ideas is expected to enhance the company's governance model and strategic direction. A robust retention plan for management also underscores the commitment of both parties to fostering a conducive work environment aimed at sustaining growth.

Mr. Bosch further emphasized his commitment to ensuring that minority shareholders are respected throughout this process. He has expressed his intent to retain his shares unless absolutely necessary to facilitate the transaction, highlighting a strong commitment to stakeholder equity and engagement.

Tether’s Vision and Strategic Alignment

On the other side, Tether's CEO, Paolo Ardoino, lauded Adecoagro's impressive track record in food and renewable energy innovation. Tether's investment reflects its strategy to support sustainable companies that have a tangible impact on real-world economies. By leveraging stablecoin technology, Tether aims to promote economic resilience and inclusivity—a mission that dovetails seamlessly with Adecoagro's vision of progressive agricultural practices.

Conclusion

This strategic alliance between Adecoagro and Tether Investments holds promise for the future of both entities. As Adecoagro progresses towards achieving its growth objectives, the collaboration is poised to enhance the agricultural and renewable energy landscape in South America, thereby contributing to both economic and environmental sustainability.

The partnership serves as an exemplar of how traditional industries can integrate modern technology and investment to drive growth and innovation, setting a benchmark for future endeavors in the sector. As this partnership unfolds, stakeholders and market observers will undoubtedly watch closely to see how the ambitions laid out become a reality in the dynamic world of sustainable production.