Sale of sugar mill to Singapore’s Sucrogen gets go-ahead from Proserpine creditors
Sucrogen, the Australian-based sugar subsidiary of Singapore-listed Wilmar International Limited, has been given approval to purchase Proserpine Sugar Mill by the mill’s creditors, Westpac Bank.
Sucrogen’s offer comprised a headline price of A$120 million, plus a working capital adjustment, normal settlement adjustments, as well as absorption of the mill’s normal operating costs and certain critical capital expenditure incurred from 31 October 2011.
Sucrogen CEO Ian Glasson said the creditors’ vote was a great outcome and paved the way for the sale transaction to be completed by the end of the year.
Proserpine Sugar Mill is based in North-East Queensland and is wholly-owned by 214 sugarcane suppliers. It is Australia’s fifth-largest raw sugar mill. Sucrogen faced competition from Tully Sugar Limited, which is owned by the China Oil and Food Company (COFC), to purchase the mill.
In November 2011, the mill was placed into voluntary administration after members of the co-operative failed to vote unanimously in support of Sucrogen’s takeover.
Mr Glasson said Wilmar had expressed a strong interest in working with growers to help expand Proserpine’s sugar industry for the future.