Wilmar: the co’s second attempt to win over Prosperine Co-operative Sugar Milling Association has failed, despite it sweetening its bid by A$5m to A$120m. Sucrogen (Wilmar’s sugar unit) received only 69% of votes, fewer than the required 75%.
Wilmar is keen on Proserpine as it would help increase its market share in Australian sugar cane processing to near 50%. Proserpine would add 1.7mt to the 15mt of cane processing that Wilmar already owns via Sucrogen.
This proposed transaction with Proserpine would have given Wilmar's growth ex-China further momentum. But impact may be limited as sugar is ~5% of its profit base this year.
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