GPG sells stake in Aussie sugar firm

Sir Ron Brierley. Photo / Greg Bowker

Sir Ron Brierley's investment company Guinness Peat Group has sold a 19.9 per cent stake in Australian-listed company The Maryborough Sugar Factory, according to an announcement to the Australian Stock Exchange.

The stake has been sold to Mitr Phol Sugar Corp, a sugar company base in Thailand.

"MSF understands that the proposed acquisition price is A$4 per share in cash, conditional upon Mitr Phol obtaining a seat on the board of MSF, Foreign Investment Review Board approval to exceed 14.9 per cent if required and confirmation of certain matters relating to the Northern Milling joint venture," Maryborough Sugar said.

It said it would be unable to respond to Mitr Phol's requests until it had talked to its new shareholder.

Maryborough Sugar has been evaluating various options for the funding of its growth strategy, including the possibility of developing a relationship with a strategic party, and is in discussions with several potential interested parties.

It said yesterday that Mitr Phol had so far not participated in this process.

GPG's strategy itself has been in question after New Zealand director Tony Gibbs was removed as an executive director this year after publicly opposing plans to spin off GPG's Australian assets.

In September, GPG appointed four new independent non-executive directors to its board.

An independent subcommittee of the board is evaluating all available strategic options. Goldman Sachs & Partners Australia and Greenhill Caliburn, the joint financial advisers to GPG, are assisting the subcommittee.

As at June 30 GPG had a 24.3 per cent stake in Maryborough Sugar, according to GPG's accounts.

- NZPA