Shareholders in Tully Sugar remained locked in discussions last night over a hostile takeover by Maryborough Sugar Factory that would create Australia's fourth-largest sugar producer.
According to The Australian Financial Review, shareholders of the sugar mill operator demanded to know more about the proposed deal and requisitioned yesterday's extraordinary general meeting with the board, which earlier this month rejected Maryborough's 13-for-1 scrip offer.
The offer valued Tully at $90.4 million but a 12 per cent slide in Maryborough's share price since the initial bid in August values the group at $78.2 million.
Tully's board criticised the lack of a cash bid and warned shareholders they faced lower dividends if they accepted the deal.
Industry sources yesterday said Maryborough would probably strengthen its offer with cash after a $13 million share placement earlier this month. Maryborough is also raising a further $5 million from existing shareholders.
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