Mackay Sugar may invite investor

DEBT-LADEN Mackay Sugar has put the sale of its profitable cogeneration plant on hold and will instead look for investors to help pay down its $200 million debt.

After reviewing six offers to buy the $120 million plant, the grower-owned company found that the potential buyers were interested in the whole company.

The sale of the cogen plant was the keystone of Kidder Williams’ plan to drag the second largest miller in Australia out of debt. Now Mackay Sugar is seeking proposals from companies interested in investing.

Mackay Sugar chairman Andrew Cappello said investment could be a better option for shareholders as they could keep their stake in the profitable cogeneration plant.

“It’s always been an option, if we had reasonable offers, for a partial or full sale, and given now we have gone through the process (of offering the cogen plant for sale) they were showing interest in the whole business,” Mr Cappello said.

He said it would be irresponsible to know the interest was there and not investigate whether or not that was the best thing for the company.

“It really depends on who that cornerstone investor is,” he said. “There is a lot of interest. It is not as simple as a financial decision because it is like a marriage.”

Mr Cappello said the culture of potential cornerstone investors was important.