Australian rice farmers could earn a $200 million payday, with processing and marketing firm SunRice pitching for a listing on the stock exchange.
SunRice has proposed a listing on the ASX and a $30 million capital raising, to support a five-year growth strategy.
“Together, SunRice, our growers and shareholders are ideally positioned to take one of the most significant steps forward in our 70-year history,” chairman Laurie Arthur said.
“The ASX provides access to Australia’s largest pool of equity capital and a listing will provide the opportunity to attract investment from both new and existing shareholders to support our growth strategy and benefit both A and B Class shareholders.”
Unveiling the SunRice 2022 Growth Strategy, Arthur said the listing would present opportunities to capitalise on global food trends, and SunRice’s competitive advantages, to increase farm gate returns and drive shareholder value.
“We have a strong growth agenda over the medium term, however SunRice requires capital beyond our current capabilities to deliver on our strategy in full,” Arthur said.
SunRice will hold a shareholder vote at its 2018 AGM on September 20. If 75% of SunRice’s represented A and B Class shares support the plan, it will go ahead.
“Under the Proposal there will be no change to the fundamental structure or operation of SunRice, which has seen us successfully deliver returns for both A and B Class shareholders for more than 10 years,” Arthur said.
“This presents a compelling opportunity for the company, our Riverina growers and our shareholders.”