12 February 2019 | News
The transaction is subject to the approval of Mackay Sugar's shareholders
Nordzucker and Mackay Sugar Limited have contractually agreed that Nordzucker will acquire a 70 per cent majority stake in Australia's sugar producer.
As per the company statement, “Nordzucker will contribute equity capital in the amount of 60 million Australian dollars (AUD) (currently around EUR 38 million) for the 70 percent stake in the share capital. Mackay Sugar will also receive an additional shareholder loan of up to AUD 60 million. The equity and debt capital contribution will mainly be used for maintenance and capital expenditures in order to significantly increase the availability of the three remaining plants with an annual production capacity of about 700,000 tonnes of sugar over the next few years and make the company sustainably profitable.”
Dr. Lars Gorissen, Chairman of the Executive Board said, “The growth in sugar is taking place in regions outside the EU. By acquiring a stake in Mackay Sugar, we can secure a substantial share of the Australian market and gain access to the Southeast Asian market. Cane sugar production is profitable even at lower sugar prices due to cost structures. We are convinced that Mackay Sugar with its investments in the plants will be able to make in the medium term a sustained positive contribution to Group earnings.”
Jochen Johannes Juister, Chairman of the Supervisory Board of Nordzucker AG said, “Like Nordzucker, Mackay Sugar is owned by its growers. Australia is a politically stable country and the local infrastructure is optimal. The Supervisory Board is convinced that the entry into cane sugar production and the investment in Mackay under the conditions set is a strategically correct step to make Nordzucker stable and competitive in the long term.”
The transaction is subject to the approval of Mackay Sugar's shareholders and other conditions precedent such as the sale of one of the four sugar factories.