Just days away from the members’ vote Sucrogen has announced an extra A$5 million, which will effectively increase net proceeds from the proposed sale of the Proserpine mill.
“We are providing this extra A$5 million in net sale proceeds to ensure
members receive a greater financial return from the sale - now estimated at
A$38 million,” said Sucrogen CEO Ian Glasson.
The extra $5million does not actually increase Sucrogen’s headline price but the company’s executive general manager for strategy and business development Shane Rutherford said headline price was not something members should be focussing on.
“In fact you can actually have a higher headline offer which returns less to members in the end,” Mr Rutherford said.
“What we’ve been able to do is come up with a way we can guarantee a $5million increase in net proceeds to members, but we are not prepared to disclose how we have done that at this point,” he said.
“This is a genuine gesture to provide additional funds for members. It’s an absolute commitment. We’ve amended our arrangement with Proserpine. This is riskless, it’s in writing and it’s executed.”
Proserpine’s members have until 5pm on Thursday to vote on Sucrogen’s offer to buy the mill. Should the offer be accepted, Sucrogen supports the Proserpine board in making an advance payment of up to A$15 million to members before Christmas
2011.
“Members have told us they strongly support an advance payment of sale proceeds and we’re happy to sit down with the board to work through the process to see if we can make that happen,” Mr Glasson said.
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