Sale of Proserpine Mill
Last Updated on Monday, 06 June 2011 00:48
Proserpine Co-operative Sugar Milling Association Limited (PCSMA) wishes to announce that it has entered into an agreement with Wilmar International Limited’s Australianbased sugar subsidiary, Sucrogen, for the sale of all of the business assets of PCSMA, on a debt and cash-free basis, for A$115 million.
PCSMA is a co-operative sugar mill, wholly owned by its grower members. It is Australia’s 5th-largest raw sugar mill, with a current sugar cane crop of around 1.75 million tonnes of cane.
The agreement is subject to the approval of PCSMA members, the Australian Competition and Consumer Commission (ACCC) and the satisfaction of other customary conditions precedent.
Sucrogen currently owns and operates seven sugar mills in North and Central Queensland, producing almost half of Australia’s raw sugar total supply.
PCSMA CEO John Power said the sale of PCSMA would secure the future of the Proserpine Sugar Mill and the sugar industry in the Proserpine area.
“Sucrogen has a significant presence in the Australian sugar industry in raw sugar production, sugar refining, ethanol and liquid fertiliser production,” he said.
“They currently process about 15 million tonnes of cane and manufacture over two million tonnes of raw sugar annually.
“Being part of the Sucrogen group will ensure the sugar industry in Proserpine will grow and prosper and that all stakeholders will have a secure future.”
Mr Power said Sucrogen’s vision was to grow the business and invest in the local area.
“Sucrogen is a good fit for Proserpine and will ensure that the potential in the region for expansion of the cane-growing area and increase of cane to the mill as recently seen in Sarina and Burdekin regions,” he said.
“This will benefit all local sugar industry stakeholders and ensure the industry thrives. “As part of the sale, Sucrogen will honour all existing cane supply agreements and community support projects and provide continuing employment for all staff and
employees.”
PCSMA Chairman Lou Raiteri said the Board of PCSMA had investigated a number of different options with the advice from lead adviser Peter Bishop of Crowe Horwath with legal advice provided by HopgoodGanim. The Board believes the Sucrogen offer represented fair value, considering what was being offered for similar assets in Tully.
“The offer from Sucrogen will secure the mill for growers and employees, going forward, and ensure access to sources of capital and sugar expertise to sustain the future growth and prosperity of the sugar mill,” he said.
“In addition, members of the co-operative will also receive a much-needed cash return for their share of the co-operative.”
Mr Raiteri said the final decision rested with the members, who would have several weeks to consider Sucrogen’s offer before they would vote on a special resolution, by postal ballot, to sell the assets. This was expected to be held in late July.
“We recognise this is a major decision for our members and we will ensure that they are provided with as much information as possible to allow them to make an informed decision,” he said.
“There is a long history at Proserpine of grower ownership and control. However, we need to recognise that times have changed and we need to move with the times if we are to secure the future of the sugar industry in Proserpine.”
For further information please contact:
Chairman of Directors, Lou Raiteri (0427 188 079)
CEO, John Power (0407 474 419) or This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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