Wilmar subsidiary fails to get support for acquisition

Sucrogen needed at least 75% positive votes to be given the green light but got only 70%.

A statement by Wilmar said its Australian-based subsidiary is disappointed that it was unable to secure the necessary level of support from Proserpine Co-operative Sugar Milling Association members to enable its proposed purchase of PCSMA’s assets to proceed.

“In order for Sucrogen’s offer to be approved, at least 75 per cent of PCSMA members who voted needed to vote in favour of Sucrogen’s offer. Although the Sucrogen offer received majority support with 70% of members who voted, voting in favour, this was not sufficient,” said Wilmar.

In June Sucrogen announced that it had entered into an agreement with PCSMA to purchase the association’s business assets for A$115 million, on a debt-free and cash-free basis. The final purchase price was expected to be about A$118 million, including completion adjustments.

Sucrogen CEO Ian Glasson said, “We believe we did everything we could to get our offer over the line. It is, however, unfortunate for the majority of Proserpine members who voted in favour of the Sucrogen offer, that a minority of growers were distracted by other complex and conditional concepts floated by other interested parties.”

He however thanked the PCSMA Board, which had recommended members vote to support the offer. Glasson added that they are grateful to members and Proserpine Sugar Mill employees for allowing them the opportunity to share their vision for the growth of the Proserpine sugar industry.