A big majority of SunRice growers and B-class shareholders have voted in favour of listing the company on the Australian Securities Exchange (ASX), freeing up their shares for sale to investors from outside the industry.
At the company’s Thursday annual general meeting in Jerilderie, 81 per cent of A-class (grower) shareholders’ votes supported transferring the processing and marketing company’s shares from the National Stock Exchange to the main ASX board at a date still to be confirmed.
B-class shareholders, who hold 56.5 million liquid shares in the business, gave 92pc voter support to the plan, which will allow any B-class shareholder to sell shares at any time, to any buyer.
At present SunRice shares can only be traded to those within the rice industry – primarily grower families – and no single entity can own more than five per cent of company stock.
A new cap of 10pc will still apply as a safety net to help protect the company against potential control by non-grower investors.
Day-to-day operations, including the process for determining paddy prices for Riverina growers, will not change as a result of the ASX listing.
- Laurie Arthur, SunRice
“The board appreciates the participation of all shareholders who engaged with directors on this issue in the past few months and who voted on the resolutions, and appreciates the support received for the ASX proposal,” said chairman Laurie Arthur.
Growth strategy enhanced
An ASX listing will also provide SunRice with access to a deeper pool of capital, improving its ability to raise funds to accelerate its 2022 Strategy.
Accelerating the growth plan has become a key focus for the business to help improve its resilience and increase its balance sheet strength, particularly given current exposure to “cyclical and unpredictable business condition changes”, such as drought.
Shareholders were told SunRice wanted growth and earnings results which allowed growers to maximise their paddy returns when better seasonal conditions in southern NSW made planting rice viable again.
Capital raising
A decision on the planned $20 million-plus capital raising, potentially to be conducted with the ASX listing, would be determined by a range of factors, including business and market conditions.
The AGM was told SunRice’s existing corporate structure and day-to-day operations, including the process for determining paddy prices for Riverina growers, would not change as a result of the ASX listing.
The board will retain a majority of seven grower directors, alongside four non-grower board members, including managing director, Rob Gordon.
Directors and management would advise shareholders of the date of the transfer from NSX to the ASX via an information memorandum also open to potential new investors.
Ricegrowers Association of Australia has congratulated SunRice, its shareholders and growers on the successful resolution of the listing proposal.
“Our rice industry has today determined its future and yet again has taken a clear step towards securing its future success and sustainability,” said RGA president, Jeremy Morton.
“We believe any funds generated from a capital raising will enable SunRice to meet its 2022 Growth Strategy and the company’s overarching purpose of receiving, processing and marketing rice.”
New directors
This week’s meeting also voted to appoint new external directors Luisa Catanzaro and Dr Andy Crane.
Mr Arthur said their experience would provide a broader range of skills especially beneficial over the coming year as SunRice addressed the drought situation in the Riverina, and accelerated its global expansion agenda.
“Both Luisa and Andy have extensive experience in the agribusiness sector and also in implementing expansion strategies in Asia – skills that will be invaluable for SunRice as it implements its 2022 Strategy in coming years.”
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