Nov. 16 (Bloomberg) -- MSF Sugar Ltd., an Australian producer and processer, recommended that shareholders accept a A$313 million ($316 million) takeover offer from Mitr Phol Sugar Corp., a closely held Thai sugar miller.
The board unanimously recommended the bid, subject to there being no superior proposal, Gordonvale, Queensland-based MSF said in a statement today. Mitr Phol has completed due diligence, according to the statement.
The Thai miller has joined Bunge Ltd., the world’s second- largest sugar trader, and Singapore-based Wilmar International Ltd. in seeking sugar assets in Australia to meet rising Asian demand. Cofco Ltd., China’s biggest grains trader, won control of Tully Sugar Ltd. in July and is seeking to acquire Proserpine Co-operative Sugar Milling Association Ltd.
“The Mitr Phol Offer is an attractive offer and provides all MSF shareholders with a substantial premium to the price at which MSF shares last traded prior to the announcement of the conditional agreement with Mitr Phol on Nov. 9,” Chairman James Jackson said in the statement.
Mitr Phol, which already owns about 22 percent of MSF, is offering A$4.45 per share in cash for the shares it doesn’t already own. That’s 31 percent higher than the stock’s Nov. 4 closing price.
MSF advanced 0.7 percent to A$4.44 at 1:19 p.m. in Sydney trading, compared with the 0.3 percent decline in the benchmark S&P/ASX 200 index.
The company owns four sugar mills with a total crushing capacity of about 4.7 million metric tons of cane, according to its website.
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