A message from the Proserpine Mill

 Proserpine Sugar Mill’s Acting CEO Ian McBean has this message for growers:

 “There is no guarantee that Mackay Sugar can or will make an offer for Proserpine, let alone a superior offer to the one from Sucrogen. For Mackay Sugar to encourage Proserpine members to vote “no” to the Sucrogen offer in the absence of another offer is irresponsible. Mackay Sugar is asking Proserpine members to sacrifice the real offer that would return approximately $25 million to members for nothing in return,” Mr McBean said.

 “What Mackay Sugar has done is outline a concept that would still result in our members losing control of their Mill for less up front cash and which would take more time and money to deliver, which the Mill cannot afford,” he said.

 Mr McBean wants growers to appreciate there are significant hurdles to be overcome before what Mackay Sugar has outlined could be even be implemented. These would include 75 per cent of Proserpine Mill members agreeing to convert their Cooperative to a public unlisted company; at least 75 per cent of Mackay Sugar shareholders agreeing to sell 25 per cent of their company to the French commodities trader, Louis Dreyfus; additional approvals that may be required from Mackay Sugar shareholders to issue shares to Proserpine growers; and Mackay Sugar being able to secure the necessary finance.

 “This will all take considerable time and passes all of the risk, which is significant, to the Proserpine growers,” Mr McBean said.

 “Mackay Sugar is asking Proserpine members to put everything at risk and vote “no‟ to the Sucrogen offer but cannot provide a firm alternative that is superior to the offer on the table.”

 Mr McBean said the Proserpine Mill was required to reduce existing debt by $35 million by 31 October 2011.

 “The Proserpine Board has run an orderly process to repay debt and secure the future of the Mill by the end of October. Mackay Sugar cannot commit to provide a superior offer to meet that timeframe,” Mr McBean said.

 Mr McBean pointed out that Mackay Sugar had been given the same opportunity as other prospective investors and that claims they had been “locked out” of discussions were untrue.

 “Mackay Sugar were given the same opportunity as Sucrogen and seven other potential investors but chose to opt out – we can only assume because they thought Tully Sugar was a better option,” he said.