Thai giant offers $313 million for MSF Sugar

THAI sugar giant Mitr Phol hopes to create a profitable future for Queensland growers by increasing land in production.

The company has launched a $313 million all cash take-over bid for the Mulgrave, South Johnstone and Tableland mills, 6000ha of agricultural land and other assets owned by MSF Sugar, the Cairns Post reports.

The Foreign Investments Review Board last week gave the group the go-ahead and shareholders have until February 10 to accept the $4.45 per share offer, which has been unanimously recommended by the directors of MSF Sugar.

Touring the Far North this week, the company's president, Krisda Monthienvichienchai, and vice-president of strategic business development, Peter Michener, spoke to growers and industry groups about their plans to expand and diversify if the bid is successful.

They say the Far North's cane crops are an "ideal fit" for the sugar deficient Asian markets and hope to get production up to past levels before expanding.

They also hope to make an argument for ethanol production, saying it "makes sense" for the Australian sugar industry.

Mr Michener said they don't anticipate closing mills, such as Babinda's, should they take over.

"Our main focus is getting cane production up to previous levels and looking at expanding," said Mr Michener.

"MSF already has four very good mills, we will invest in those mills and see if we can make those more productive and essentially work with the cane growers to produce more cane."

Mr Monthienvichienchai said the group wanted to combine their expertise in diversification with the Far North’s long cane growing history.

"We see that we can improve, we can help the sugar industry here, especially for the canegrower," he said.

Chairman of cane growers Innisfail, Joe Marano said the company's vision was "positive."

"From a grower perspective they sound good, promising," Mr Marano said.

source: weeklytimesnow