Board blasts $90m takeover bid
THE board of Tully Sugar has blasted Maryborough Sugar Factory's $90 million takeover offer as disgruntled shareholders of the north Queensland mill try to orchestrate the merger successfully.
Tully's board yesterday advised shareholders to take no action on the offer until a formal recommendation is made.
That will be made in a target statement from the mill, to be sent to shareholders in a fortnight.
MSF has offered shareholders 13 shares for each Tully share, valuing Tully at $90.4 million and giving its shareholders a 46 per cent stake in the merged entity.
But Tully's board has slammed the offer, saying it is inaccurate and misleading. It has also warned shareholders could face reduced dividends if they swap the shares.
Meanwhile, dissatisfied Tully shareholders have gathered the required five per cent vote to call a meeting on November 24 to discuss the proposal.
Chair Dick Camilleri said Tully had asked MSF to make changes to its bidder statement to ensure it was accurate. The revised statement was issued on Wednesday.
Mr Camilleri said the board was also concerned Maryborough had downplayed its pre-tax loss of $5.22 million in the last financial year and a pre-tax loss of $7.119 million in 2007-2008.