SUNRICE'S recent $100 million debt reduction would have made it "a gift" to Spanish suitor Ebro Foods if the takeover was successful.
Werribee grain and vegetable grower and SunRice's largest shareholder Julian Menegazzo said the huge reduction in the the NSW rice processor's debt since the Ebro takeover was spurned by rice growers last May has vindicated those - including himself - who opposed the deal.
Ebro made a bid of $610 million for SunRice in October, 2010.
Mr Menegazzo said with a bank debt of more than $300 million, the $310 million residual gave SunRice's B-class shareholders $5.02 a share while shareholders received $50,000 for the normally non-tradeable A-class shares.
He said the company's half-yearly report released recently showed the bank debt at $187 million.
"By using this new debt figure, my calculations are that Ebro's $610 million SunRice enterprise value would lead roughly to (a) $7 a share figure," Mr Menegazzo said.
"In my view, a higher enterprise value may be achievable if the current constraints on SunRice shareholdings and attaching rights are removed. Whatever the value, the $5.025 a B-class share Ebro offer - I believe- would have been a gift to Ebro.
"What I don't want them (SunRice directors) to do is sell the company cheap again."
Mr Menegazzo reiterated his call for SunRice to be listed on the Australian Stock Exchange so the true value of the shares could be realised.
SunRice is listed on the National Stock Exchange of Australia.
Recent trades have been about $1.85-$1.90 a share.
The company's constitution prevents SunRice shares being sold to parties other than current or former rice growers.
The Menegazzo family's share in SunRice makes it the largest shareholder in the rice processor.
Mr Menegazzo said the problem with listing on the NSX was that the shares were "illiquid".
"The real story is that the shares are worth a lot more than $1.90," he said.
"You have to make them liquid and the only way to do that is to list on the ASX. But that will mean a change in the structure of the company. That's a political issue."
SunRice declined to comment.
