AN independent expert has found a foreign bid for NSW rice processor SunRice a good proposal.
Lonergan Edwards & Associates, which was commissioned by the SunRice Board to assess the takeover proposal by Spanish food conglomerate Ebro, released its extensive report, concluding the bid was "fair and reasonable and in the best interests of both the A and B-class shareholders in SunRice in the absence of a superior proposal".
If rice growers accept the bid by Ebro, it will see another Australian grain company fall into foreign hands, following ABB Grain being sold to Canadian grain company Viterra in 2009 and AWB being sold to Canadian fertiliser giant last year.
Ebro has offered $50,000 for each A-class SunRice share and $5.025 for every B-class share to secure the company.
The SunRice board said Ebro’s financial offer for B-class shares was a “significant premium” to recent share trading prices.
The A-class shares currently cannot be traded.
The board is supporting the Ebro proposal, saying it would offer greater benefits to SunRice shareholders than other options.
SunRice has convened a meeting for May 31 at Jerilderie to approve the takeover.
There is significant opposition to the bid, with the company’s largest B-class shareholder Julian Menegazzo saying he will vote against the proposal.
Ebro must secure support of at least 75 per cent of A-class members and 75 per cent of B-class shareholders to win control of the company.