The Cairns Post | April 2011
Natalie Dixon
A CHINESE Government owned multinational has purchased shares in the Tully Sugar Mill with a view to stage a $126.7 million takeover.
China National Cereals, Oils and Food Stuffs Corporation is a state owned foodstuffs import and export holding company with a monopoly on the grain trade in China.
The group has recently purchased a substantial number of shares in the grower-owned Tully mill.
The total amount is not yet known but is expected to be between 15 and 20 per cent.
Using Deloitte to buy on its behalf the group hid its identity from some shareholders until the shares were transferred.
On Saturday COFCO came to the mill’s board with a non-binding indicative takeover offer.
Though not a firm offer, Tully Sugar Ltd CEO John King said a takeover bid is likely in the near future.
‘‘We have been advised that COFCO, through its Australian subsidiary Top Glory Australia Pty Ltd, has acquired a significant equity stake in Tully Sugar,’’ he said.
‘‘It could be as high as 20 per cent and I can verify that they do have a view to own 100 per cent of the shares.”
The offer is subject to conditions, including Foreign Investment Review Board approval and a change in the mill’s constitution that currently doesn’t allow one shareholder to own more than 20 per cent.
Mr King said a resolution to remove the shareholding limit must be approved for a formal takeover bid or an acquisition of more than 20 per cent of shares to be completed.
“There will be a meeting in Tully on May 18 for shareholders to consider amending the constitution to remove the 20 per cent restriction,” he said.
Several parties have recently purchased shares up to 20 per cent.
Bunge Asia returned to the board on April 7 with an offer similar to COFCO, and a merger between Tully, Mackay Sugar and Mossman was being discussed until Tully Sugar withdrew.
--
ABC News | 19 April 2011
Shareholders in a far north Queensland sugar company will hold a meeting next month that could open the way for a possible takeover bid.
The meeting will consider a resolution to amend the constitution of Tully Sugar Limited to remove the current restriction on any party acquiring more than 20 per cent of shares in the company.
Its CEO, John King, says no formal takeover bid has been made but there has been interest from a Chinese company.
"The company is Cofco Corporation and we've been advised that Cofco, through their Australian subsidiary Top Glory Australia Pty Ltd, has acquired an equity stake in the company," he said.
"We have met with representatives of Cofco on a couple of occasions in the last week or so."
