United front needed
 National interest ... Landline cameraman Paul Freeman films outside the SunRice meeting in Jerilderie last week.Picture: Jessica Everingham |
It was a dry and dusty report for the stock exchange: At the Scheme Meetings of SunRice held in Jerilderie NSW today, SunRices shareholders voted against the Scheme of Arrangement and Supporting Resolutions announced to the NSX on 26 November 2010 under which Ebro Foods S.A. (Ebro) proposed to acquire all of the A Shares and B Shares in SunRice. Outside the Jerilderie Civic Centre there was much more emotion on show.
SunRice chairman Gerry Lawson in a media doorstop had quite a testy exchange with a reporter who wanted to know how he felt about losing the vote.
How do you say that? Theres a pretty clear mandate, Mr Lawson said.
But, he conceded, we are in interesting times we obviously will have some issues to address, no doubt referring to the fact that he is now at the helm of a company that almost three-quarters of shareholders voted to sell.
Its history now that 67 per cent of A-class shareholders, shy of the required 75 per cent, and holders of 76 per cent of the B-class shares supported the $610 million Ebro bid for Ricegrowers Ltd, the SunRice parent company.
Unsurprisingly, when news emerged that the bid had failed, opponents of the takeover were cock-a-hoop.
Blighty farmer John Bradford said after the long meetings and vote: Im ecstatic. The directors now have to look at themselves.
Tocumwal ricegrower and Southern Riverina Irrigators chairman Ted Hatty, a holder of B-class shares, said: It was an extremely close vote and there were passionate speakers on both sides of the fence.
If thats what you wanted (to sell) youd be disappointed. But it (rice) has a fabulous future and hopefully the certainty will bring some confidence back to growers.
In his formal statement released by the NSX, Mr Lawson promised to move ahead.
We will now focus our efforts on how best to underpin SunRices future, Mr Lawson said.
We will take action to address SunRices high debt and enable the company to continue to grow.
Ricegrowers Association of Australia president Les Gordon said the board had done the right thing and ought be congratulated that it had placed SunRice in a position, after many years of drought, that it was able to attract a $610 million bid.
The industry must now unite behind the board to address SunRices debt and capital investment requirements, Mr Gordon said.
Shadow Agriculture Minister John Cobb later said I thank the farmers for putting their long-term interests first by leaving SunRice in local hands.
RGA Deniliquin branch president Nick Morona reckons its not that simple.
Its very easy for politicians to say that when theyve deregulated the industry, Mr Morona said.
The fact is 76 per cent of B-class shareholders have agreed with the board to sell the company, which leaves us in a very unusual position.
Selling was the best option going forward, but the result shows a very high support for the board now we have to accept the rules and be unified: we have a great company.
SunRice chairman Gerry Lawson in a media doorstop had quite a testy exchange with a reporter who wanted to know how he felt about losing the vote.
How do you say that? Theres a pretty clear mandate, Mr Lawson said.
But, he conceded, we are in interesting times we obviously will have some issues to address, no doubt referring to the fact that he is now at the helm of a company that almost three-quarters of shareholders voted to sell.
Its history now that 67 per cent of A-class shareholders, shy of the required 75 per cent, and holders of 76 per cent of the B-class shares supported the $610 million Ebro bid for Ricegrowers Ltd, the SunRice parent company.
Unsurprisingly, when news emerged that the bid had failed, opponents of the takeover were cock-a-hoop.
Blighty farmer John Bradford said after the long meetings and vote: Im ecstatic. The directors now have to look at themselves.
Tocumwal ricegrower and Southern Riverina Irrigators chairman Ted Hatty, a holder of B-class shares, said: It was an extremely close vote and there were passionate speakers on both sides of the fence.
If thats what you wanted (to sell) youd be disappointed. But it (rice) has a fabulous future and hopefully the certainty will bring some confidence back to growers.
In his formal statement released by the NSX, Mr Lawson promised to move ahead.
We will now focus our efforts on how best to underpin SunRices future, Mr Lawson said.
We will take action to address SunRices high debt and enable the company to continue to grow.
Ricegrowers Association of Australia president Les Gordon said the board had done the right thing and ought be congratulated that it had placed SunRice in a position, after many years of drought, that it was able to attract a $610 million bid.
The industry must now unite behind the board to address SunRices debt and capital investment requirements, Mr Gordon said.
Shadow Agriculture Minister John Cobb later said I thank the farmers for putting their long-term interests first by leaving SunRice in local hands.
RGA Deniliquin branch president Nick Morona reckons its not that simple.
Its very easy for politicians to say that when theyve deregulated the industry, Mr Morona said.
The fact is 76 per cent of B-class shareholders have agreed with the board to sell the company, which leaves us in a very unusual position.
Selling was the best option going forward, but the result shows a very high support for the board now we have to accept the rules and be unified: we have a great company.
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