Tully Sugar has moved to stymie Maryborough Sugar's hostile takeover by revealing plans to list on the Australian Securities Exchange and buy the North Queensland milling assets of Bundaberg Sugar, signalling the start of a long-awaited industry consolidation.
According to The Australian Financial Review, Tully's plans would position it as Australia's third-biggest sugar company.
The announcement comes a week after Maryborough stepped up its pursuit for Tully by offering a part cash payment to its $79.8 million bid.
Tully has rebuffed Maryborough's advances since the initial bid was made in August.
Chairman Dick Camilleri yesterday conceded that consolidation in the region was now inevitable.
"Tully Sugar has become a strategically important sugar milling asset and we no longer have the option of standing still and doing nothing," Mr Camilleri said.
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