Isis Central Sugar Mill shareholders voted overwhelmingly to accept a proposal from international sugar producer Almoiz Group to acquire a majority interest.
About 150 canegrowers gathered in Childers today to consider the offer and after some robust debate, the vote in favour was 84 per cent.
The proposal had the unanimous support of the Mill's board of directors.
Almoiz Industries is headquartered in Lahore, Pakistan.
The company is recognised globally as a high-quality producer of white refined sugar and molasses, and holds a substantial share in the market. Almoiz has strong corporate clients including Pepsi.
Isis Central Sugar Mill chairman Peter Russo welcomed the vote, which will see Almoiz Group invest up to $35 million subject to approvals.
“We are pleased shareholders carefully considered all of the details put before them, as well as their own personal circumstances, and have today made an informed decision about the future of their Mill,” Mr Russo said.
“Their support is a significant milestone but there is still some way to go before the proposed transaction can proceed, including regulatory and court approvals.”
Mr Russo said the Mill surveyed its shareholders in June 2017 before undertaking a strategic review to identify ways to secure its position and boost the local sugar industry.
“After careful consideration, the board identified a proposal from Almoiz Group which we believe strikes an appropriate balance between providing immediate value to shareholders and strengthening the Company in the long term,” he said.
“In July this year we wrote to shareholders, outlining the terms of the proposal. Members of the Khan family, who own and operate Almoiz Group in Pakistan, met with ICSM shareholders to hear their perspectives. A detailed transaction booklet was sent to shareholders in October.
“It has been a long process and we thank shareholders for their patience, particularly at a time when we are all battling drought and low global sugar prices.
“We are hopeful the remaining conditions and approvals will be met this year, so we can start 2020 on firm footing with Almoiz Group. Further announcements will be made on transaction timing in due course.”
- Earlier report: Almoiz Group makes offer for Isis Mill shares