New takeover offer to keep sugar mill in local hands
Story Added : 30th May 2011
Queensland Sugar Limited (QSL) has agreed to sell its 19.9 per cent of the issued shares in Tully Sugar to Mackay Sugar, which will lift its shareholding to almost 30 per cent.
Mackay Sugar chairman Andrew Cappello said that at nearly 30 per cent, the company is now the largest shareholder in Tully and well positioned to get above the 50 per cent necessary to take control.
“Our proposal was well received at our meetings with Tully Sugar shareholders last week and we expect to have more shareholders sell to us this week,” Mr Capello said.
“By accepting Mackay Sugar’s offer, Tully growers can be confident that their sugar will be marketed through QSL along with Mackay Sugar’s export sugar.
“This ensures a transparent cane pricing mechanism and allows growers to capture the value in the supply chain.”
Mackay Sugar said if the offer is accepted, while it will maintain a grower-controlled board of directors, it will seek a change of constitution to allow for the entry of external equity into Mackay Sugar.