SunRice floats ASX bid

Nation’s healthy habits put company in good spot

AUSTRALIA’S $1.1 billion monopoly rice exporter, SunRice, is taking another run at convincing its shareholder growers to allow a listing of the company on the Australian Securities Exchange.

SunRice, the nation’s biggest food producer, yesterday unveiled a new proposal to float on the principal bourse.

It comes as consumers are increasingly turning to healthy snacks and foods, putting SunRice and its portfolio of ricebased foods in a better position to capture more space in supermarket trolleys and home pantries.

Under the proposed float, SunRice will also seek to raise another $20 million to $30 million to fuel its growth strategy.

The board of SunRice, wants to move the listing of its B-class shares from the junior National Stock Exchange to the ASX to improve access to capital and support the company’s growth strategy.

SunRice has extensive national and international food operations that include businesses in the South Pacific, Middle East and the US, and reaps sales of more than $1.1 billion a year from its pooling, manufacturing and exporting of the rice harvest.

If its fresh proposal to list on the ASX is approved by shareholders, its B-class share ownership restrictions will be removed.

A 5 per cent shareholding cap will be dumped and anyone will be able to invest in SunRice B-class shares, up to a new maximum 10 per cent cap.

It will give outside investors the first opportunity to buy a stake in the biggest locally owned food manufacturer in Australia.

SunRice said yesterday a leap onto the ASX would allow the company to take advantage of investor appetite for Australian-branded consumer goods and agricultural stocks.

Its dual-class structure, where grower shareholders have control of the company through their A-class shares, would continue.

The ASX proposal will be put to a shareholder vote at the group’s annual meeting on September 20.

SunRice chair Laurie Arthur (pictured) said: “An ASX listing will provide the opportunity to attract investment from both new and existing shareholders to support our growth strategy and benefit both A and B-class shareholders.”