Second chance for Sucrogen vote

 Sucrogen’s CEO Ian Glasson has confirmed the sugar subsidiary’s offer for Proserpine still stands, with members of the PCSMA soon to be given another opportunity to vote.

 “Growers have been proactively contacting Sucrogen requesting that we maintain our offer and we’re delighted to now be able to get to that point,” he said.

 Mr Glasson said it was his understanding the second ballot would proceed in a similar fashion to the first, whereby a notice of meeting would be issued and members given 21 days in which to vote.

 Mr Glasson told the Guardian that the timing of the new vote, which would most likely coincide with the end of the crush, around late October or early November, meant that although the company’s $115 million bid was effectively the same, growers would actually receive a greater return.

 “Although Sucrogen’s offer has maintained the same headline price the net sale proceeds to growers should increase significantly due to the extra cash in the business at that time. Effectively Sucrogen would forego those proceeds. We’re giving that money up so it’s quite a big concession on our part” he said.

 Mr Glasson said Proserpine’s board had been released from any restrictions over the past two weeks, so they could intensely review alternative offers.

 “It’s our understanding they spoke with Mackay Sugar and Cofco at length. It’s something we encouraged in the interests of full transparency.

 “Basically we’re back to where we were. The offer that’s on the table is ours and the board has a process for dealing with any other approaches,” Mr Glasson said.

 Proserpine’s board is once again recommending the Sucrogen offer to members, having now enlisted the former CEO of Mackay Sugar and QSL, John Pollock, to review both offers (Sucrogen’s and Tully Sugar’s) and provide an independent opinion.

 Mr Pollock says he has “reached the opinion that the Sucrogen offer provides members the better return and greater certainty that a sale can be completed in a reasonable timeframe.”

 Meanwhile Tully Sugar says it is disappointed with this response. COFCO Australia Deputy Chair Keith De Lacy says the company will now “consider its options”.

 “We will also seek feedback from the Proserpine Board as to why our proposal was not considered superior,” he said.