Wilmar: Sucrogen, its wholly-owned Australian sugar unit, signed an agreement with Proserpine Co-op Sugar Milling Association that will allow the unit to make a 2nd offer for the sweetener producer in Oct.
Sucrogen's A$115m offer for Proserpine was rejected last month after it failed to secure the required 75% of votes from Proserpine members it needed to complete the acquisition.
Wilmar is interested in expanding its sugar business, as prices continue to rise and are up ~15% ytd. The segment was slightly loss making in 1H11, but mgt has guided for US$100m EBITDA contribution for FY11. Expect a stronger 2H sequentially, due to seasonality.
The majority of the Street has Buy ratings on Wilmar with recent TP ranging btwn $5.31 - 6.60.
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