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Maryborough Sugar Factory (ASX:MSF) has been forced to change tack in its bid to merge with Far North Queensland miller Tully Sugar.
The Sugar factor has sweetened its takeover proposal for Tully Sugar, offering a cash component and share alternative to its original all share offer – which was first lodged almost seven months ago.
The alternative consists of $6.75 cash and 10 shares for each Tully share, valuing the unlisted Tully at $81.1 million.
The new offer came about after Maryborough failed to convince the majority of Tully Sugar shareholders to accept their original all share offer.
If the deal goes ahead, the combined company would become the fourth largest sugar company in Australia, at a time when sugar prices are rising.
Maryborough posted a $780,000 loss in 2009.