Wilmar: Grp obtained a majority of creditor votes for its AU$120m or S$158.5m purchase of Proserpine Sugar Mill, which will see Wilmar take on Proserpine's operating costs and certain critical expenditure since 31 Oct, with Proserpine's creditors getting repaid before Christmas.
Highlights that it will hit the ground running next wk and its best to ensure the mill is ready for the start of the 2012 season. Purchase will boost Sucrogen's milling capacity by 2m tons to 17m tons and increase its raw sugar production by 10% to 2.2m tons. Wilmar had became the world's 8th largest sugar producer last yr after acquiring Sucrogen. Grp is diversifying and expanding its sugar business to meet demand in Indonesia and India and rely less on the Chinese cooking oil mkt, where it has a 50% mkt shs.
Mkt is generally still positive on tocks, with 13 Boys, 8 Holds and 5 Sells with mean TP of $5.75
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