TULLY Sugar bosses have further distanced the company from a potential takeover by Maryborough Sugar, announcing a proposal to buy Bundaberg Sugar's assets in the Far North.
The move, which would see the mill buy milling assets at South Johnstone, Tableland and Babinda mills along with associated infrastructure and the Mourilyan mill site, comes less than a week after the southern miller revised its takeover bid.
The latest offer valued unlisted Tully at $81.1 million and shareholders would have received $6.75 a share, plus 10 Maryborough shares for every Tully share.
Tully chairman Dick Camilleri and the board have remained hostile to the Maryborough bid and have advised shareholders from the outset to reject the offer made initially last year.
Mr Camilleri said the proposed acquisition would further strengthen Tully Sugar and enable it to pursue its own destiny, and expand its milling, cane farming and sugar-related assets.
"Tully Sugar has become a strategically important sugar milling asset and we no longer have the option of standing still and doing nothing," he said.
Tully plans to also make a second bid for an Australian Securities Exchange listing after a failed attempt in June last year.
Mr Camilleri said Tully Sugar directors believed a listing on the ASX would enable the company to achieve its full potential and take advantage of future opportunities.
Shareholders will vote on the proposed acquisition next month and an amendment to the constitution that would allow the company to pursue an ASX listing.
Maryborough’s offer remains on the table and Tully Sugar must still prepare a fourth Supplementary Target’s Statement for shareholders to consider the southern miller’s offer.
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