Ricegrowers Ltd has released a scheme booklet for its shareholders, with the Australian company’s board unanimously recommending that investors vote in favour of a takeover by Spain’s Ebro Foods at a shareholder meeting at the end of the month.
Ebro agreed a deal to buy Ricegrowers, which trades as SunRice, in November for A$600m (US$649.6m).
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The investor booklet includes the results of an independent expert report by Lonergan Edwards & Associates, which, based primarily on share value considerations, concludes that “the scheme is fair and reasonable and in the best interests of both the A and B Class shareholders in SunRice in the absence of a superior proposal”.
A letter from the SunRice chairman outlines the pros and cons of the decision. Pros include protection from risk, access to global markets, growth opportunities, stable prices and mechanisms of support for the rice industry. Listed possible disadvantages include the loss of grower control of SunRice, and potential disadvantage based on Californian paddy prices.
The full booklet is available online via the National Stock Exchange, at http://www.nsxa.com.au/ftp/news/021723930.PDF
Australian Food News is Australia’s leading resource for the food industry, delivering daily news from the grocery, retail and hospitality sectors to 40,000 professionals each month.
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By GlobalDatahttp://www.ausfoodnews.com.au/
