Unlisted Australian miller Tully Sugar has recommended shareholders reject a share-based takeover offer from the Maryborough Sugar Factory.
The Board was adamant that the sugar firm could reap greater returns for shareholders as a standalone business despite the merits of consolidation in the sugar industry.
“Tully Sugar has strong long-term prospects as an independent business,” Tully Chairman Dick Camilleri concluded.
The Tully Board was also concerned by the recent weakness in the Maryborough share price given the deal was scrip-based and said they were confident of leading consolidation of the sugar sector in Queensland’s north.
The companies began merger discussions last year but talks broke down in May as they could not agree to terms. Maryborough then announced their takeover offer in August. The offer valued Tully at around $90 million prior to the share price decline.
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