Media Release
7 April 2011
Rice growers left out of Ebro deal
Ebro Foods, the Spanish based company attempting to lock up the Australian rice industry, have set aside $2.5 million dollars to pacify grower anger against the proposed takeover.
Under the deal, Ebro Foods have offered $5.62 for each B-class share and $50,000 for each A class share. A Class shareholders are significant stake holders because Ebro must get 75% of their votes to get the deal over the line. In the event that growers approve the deal in late May, those growers who had their A Class shares redeemed in February 2010 will have their claim to compensation heard by a retired judge.
Growers are becoming increasingly frustrated with the way the Ebro offer has been handled by the Board of SunRice, the Rice Marketing Board and the Rice Growers Association. There is concern that Ebro is dictating conditions without giving due regard to the interests of those growers who wish to continue growing rice in the future.
Aussierice welcomes the decision by Ebro Foods to recognise the rights of those growers left out of the deal but is dismayed that the Board of SunRice will not grant these same growers a say, in the upcoming vote to approve the Ebro buyout.
Aussierice is concerned that the Board of SunRice has been too focused on protecting the interests of B class shareholders at the expense of those growers and their families who wish to continue growing rice in the future.
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