A pos­i­tive step in the right di­rec­tion for lo­cal cane grow­ers

Port Douglas & Mossman Gazette - - NEWS -

MACKAY Sugar Limited chair­man An­drew Cap­pello be­lieves the ac­qui­si­tion of the Moss­man mill will com­ple­ment his op­er­a­tions, con­trib­ute to the growth of its core busi­ness, and re­sult in ad­di­tional share­holder value.

“This is a pos­i­tive step for Mackay Sugar, it presents fur­ther cane ex­pan­sion op­por­tu­ni­ties and will in­crease our sugar pro­duc­tion,” he said.

“Un­der Mackay Sugar own­er­ship there will be con­fi­dence in the long-term fu­ture of the Moss­man Cen­tral Mill.”

Un­der the sale price, the milling and re­lated as­sets will be ac­quired by Mackay Sugar through the is­sue of $12 mil­lion in Mackay Sugar shares and re­fi­nanc­ing $13 mil­lion of debt.

The shares, which amount to 3.3 per cent of the is­sued cap­i­tal of Mackay Sugar, will be held by Moss­man Cen­tral Mill.

The ex­port sugar pro­duced by Moss­man Cen­tral Mill will con­tinue to be mar­keted through Queens­land Sugar Limited.

How­ever, Moss­man Cen­tral Mill will re­tain its food grade bagged sugar op­er­a­tion, which it mar­kets un­der the brand Dain­tree Gold. Dain­tree Gold will be sup­plied raw sugar by Mackay Sugar un­der a com­mer­cial agree­ment.

Mr Cap­pello said Mackay Sugar would con­tinue the cane sup­ply agree­ment that is in place with the Moss­man grow­ers for the next three years, and would also of­fer the for­ward pric­ing op­tion and cane de­vel­op­ment in­cen­tives, such as Se­cure the Fu­ture and Plant Loan Scheme, cur­rently avail­able to Mackay grow­ers.

“Sim­i­larly, we will be tak­ing on the em­ploy­ment obli­ga­tions for those en­gaged in the cane trans­port and milling op­er­a­tions at Moss­man,” he said.

“With the ac­qui­si­tion hap­pen­ing close to the start of the 2012 sea­son, we will use the six-month crush­ing pe­riod to plan the in­te­gra­tion of per­son­nel and op­er­at­ing sys­tems as ap­pro­pri­ate.”

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