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Sunrice to delay ASX listing, restructure

Monopoly rice exporter SunRice has put its planned float on the Australian Securities Exchange (ASX) on hold because of a review by one of its joint venture partners.

In a statement, Sunrice declined to name the partner but pointed out that it remains committed to the listing and associated capital restructure.

As the ABC reports, the plan will involve first de-listing the company from the National Stock Exchange (NSX). The subsequent ASX-listed Sunrice fund would preserve grower control but also allow private investors to trade shares in Sunrice.

In its statement, Sunrice distanced itself from the misfortunes of another large Australian agricultural company Murray Goulburn which last week significantly cut its profit forecast as well as the price it pays its suppliers.

“The timing of the Capital Restructure is now being impacted by circumstances related to one of our joint venture partners; it is not being impacted by operational issues or recent media commentary regarding companies with similar capital structures,” said SunRices Chairman, Mr Laurie Arthur.

“Indeed, maintenance of our guidance on anticipated FY16 financial results indicates that the business has continued to perform well since January 2016.

“Let there be no doubt – the Board remains fully committed to the proposed Capital Restructure, but it will only be brought before shareholders for consideration when it can deliver on every element and has been through all the necessary processes, including completion of the joint venture partner’s review of SunRice-specific arrangements.”

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