RICE growers have called for a shake-up of the board of SunRice in the wake of a crucial takeover vote yesterday.
SunRice lost the ballot to pass a scheme of arrangement which would have enabled Spanish pasta and rice product manufacturer Ebro Foods to buy the Australian company for $610 million.
The scheme was defeated when the company failed to muster more than 75 per cent of A-class grower shareholders to support the takeover.
Only 67 per cent of A-class shareholders - or 474 out of 709 votes cast - backed the scheme of arrangement.
The ballot of B-class shareholders only just made the 75 per cent threshhold by a margin of less than 1 per cent, with 36,864,271 votes cast in favour of the scheme and 11,849,024 against.
Blighty grower John Bradford, who was part of a small group of rice farmers putting the "no" case to shareholders, said the SunRice board needed to be restructured.
"There needs to be change and it has to be soon," Mr Bradford said.
Lawyer Adam Bisit, who represented a number of growers opposed to the sale at the meeting in Jerilderie, also said some board members should be replaced.
Mr Bisit said an extraordinary general meeting should be called soon to replace SunRice directors and potentially make other changes to the company.
"It would be nice for the board to take a proactive role in the composition of the board, its debt and other issues," he said.
Tocumwal grower Lach Thorburn, who voted against the proposal, told The Weekly Times before the meeting started the SunRice board had "screwed up and I think there should be change".
Rice grower Peter Draper, who spoke in favour of the takeover, said during the meeting a successful "no" vote was a rebuff to the board.
"A 'no' vote, in my opinion, is a no confidence vote in board management," Mr Draper said.But SunRice chairman Gerry Lawson rejected any suggestion the failed ballot was a rebuff to himself and the board.
Questioned whether he would stay on as chairman, Mr Lawson said he would "think about it".
"The vote being strongly in favour as it was, I don't think that (a spill of the board) is where we are likely to go," he said.
Mr Lawson was clearly disappointed with the vote.
Announcing the ballot results, he said the A-class shareholders voted down the takeover proposal.
"However, B-class shareholders have supported the proposed scheme and this result is a disappointment for them," he said.
Ebro had offered $5.62 for each B-class share - about two and a half times share prices in recent years.
In a clever move, it also planned to pay $50,000 for each A-class share, which were normally worthless.
Mr Bradford said SunRice had spent a large amount of shareholder funds to "get the vote over the line".
He said the debate on the takeover was "all one-sided" until a group of farmers put together an opposing view.
Mr Bisit and vocal opponents to the takeover briefly met with Mr Lawson after the meeting to discuss a shake-up of the board and other issues to progress the company's future direction.
One of the opponents, Greg Thorley, said Mr Lawson was not willing to listen to them.
"I just hope the board doesn't go into sook mode," Mr Thorley said.
"Instead of concentrating on selling us out, now they can concentrate on doing what they were elected for: getting better prices for growers and moving the company forward for the betterment of all A and B-class shareholders."
