Ricegrowers releases Ebro takeover report

Posted by Nicole Eckersley on 27th April 2011

Ricegrowers Ltd has released a scheme booklet for its shareholders, with the board unanimously recommending that they vote in favour of a takeover by Ebro at a shareholder meeting at the end of this month.

The 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