Mitr Phol launches bid for Australia's MSF Sugar

Thailand’s Mitr Phol Sugar Corp. Ltd. has launched a A$313 million (US$324 million) bid for Australia’s MSF Sugar Ltd., one the country’s last remaining independent cane millers. Privately-owned Mitr Phol Sugar, the world’s fifth largest sugar producer, and the largest producer in Asia, already owns 22% of MSF. It is offering a 31% premium to MSF’s last trading price of A$4.45 a share. Mitr Phol’s offer is conditional on a 50.1% acceptance and approval from the Australian anti-trust regulator. Under an agreement with MSF, Mitr Phol has been granted exclusivity from November 4 to November 21, 2011 to complete limited due diligence. MSF has undertaken not to solicit an alternative proposal until Mitr Phol completes due diligence up to April 30, 2012. Gordonvale, Queensland-based MSF has approximately 4.7 million tons of cane crushing capacity, 550,000 tons of sugar production capacity, independent marketing capabilities and a significant stake in strategic industry sugar port terminal infrastructure, through Sugar Terminals Limited. Its mills are located at Gordonvale, South Johnstone, Atherton Tablelands and Maryborough. The Australian sugar industry, which has recently been consolidating, competes against major growing nations, such as Brazil and Thailand. Mitr Phol, which is majority owned by the Vongkusolkit family, is Thailand’s largest sugar producer and the second largest in China through its joint venture company East Asia Sugar. It also has operations in Lao, Cambodia, Vietnam and Australia. Its key business units include sugar, ethanol, biomass energy, fiberboards, logistics and paper. (November 9, 2011)