Thai sugar stake gets green light
A MOVE by an Asian company to secure a significant stake in Maryborough Sugar factory has been given the green light.
Thai-based company Mitr Phol was given approval by the Foreign Investment Review Board to take a 19.99 per cent stake in the factory.
The privately owned company is one of the world’s largest producers of sugar, with operations in Thailand, China and elsewhere in the ASEAN region.
Mitr Phol is Thailand’s biggest producer of sugar.
The business was initially established in Ratchaburi province in 1946 as a small family business, producing and trading condensed syrup to sugar mills.
The deal was worth $40 million, with Mitr Phol paying the Guinness Peat group $4 a share.
Mike Barry, chief executive of Maryborough Sugar Factory (pictured), said he had been advised that Mitr Phol had waived all the remaining conditions in its agreement with Guiness Peat Group.
“It’s a big investment for them,” he said.
Mr Barry said the transaction would not impact on the day-to-day operation of Maryborough Sugar Factory but it had increased the profile of the company.
“It’s a vote of confidence in Australian sugar,” he said.
Thai-based sugar company Mitr Phol was founded in 1946
The business has five mills which have total daily production capacity of 130,500 tonnes of cane
The mills have a cane crushing capacity of 13 million tonnes per year
The mills produce annual sugar output of about 1.4 million tonnes