SUNRICE has again delayed its capital restructure bid after it was impacted by new developments with one of its joint venture partners.
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The Leeton-based business originally delayed the restructure in January, but has now been forced to for a second time.
During the review process, SunRice has conducted discussions with the key joint venture partner about the capital restructure.
However, that partner has now decided the proposal now requires its own review to be undertaken.
It’s obviously a process that needs to be done correctly. I think it it unfortunate it has been delayed again and is being dragged out, but it needs to be done right.
- Leeton shire rice grower Peter Draper
This means the SunRice board is unable to provide a definitive timeline for the proposed restructure, which includes listing the company on the National Stock Exchange. Company chairman Laurie Arthur was hopeful the process would soon be back on track.
“The timing of the capital restructure is now being impacted by circumstances related to one of our joint venture partners,” he said.
“It is not being impacted by operational issues or recent media commentary regarding companies with similar capital structures.
“Let there be no doubt – the board remains fully committed to the proposed capital restructure. (However), it will only be brought before shareholders for consideration when it can deliver on every element and has been through all the necessary processes.
“(This includes) completion of the joint venture partner’s review of SunRice-specific arrangements.”
Leeton shire rice grower Peter Draper said it was important for the company to get it right.
“It’s obviously a process that needs to be done correctly,” he said.
“I think it it unfortunate it has been delayed again and is being dragged out, but it needs to be done right.”
Mr Draper was in support of the restructure.
“It will be good for the company and growers in the long-term,” he said. “There is more competition out there now for summer crops, so something had to be put forward.”
SunRice’s latest financial year ended on April 30. The company expects to maintain strong financial performance and, as previously advised in December, profit is anticipated to be in line with the previous year’s result, subject to completion of the full year audit.
