Spanish food processor Ebro Foods has improved its A$600m (US$602m) offer for Ricegrowers, the Australian company that sells through the SunRice brand.
In a letter to shareholders, Sunrice chairman Gerry Lawson said on Friday (11 February) that Ebro would guarantee to purchase all the medium-grain rice grown in Australia at the benchmark price of California rice for seven years, up from five previously.
Go deeper with GlobalData
Ebro would then automatically roll this over for another seven years in the absence of a material adverse change in business or regulatory conditions, Lawson said.
The Californian benchmark is usually the highest priced in the world.
Lawson said the extended commitment will provide growers with greater certainty over the purchase of their crops and the price to be paid by Ebro, adding that the revised seven-year rolling commitment will provide “greater certainty to growers than the SunRice Board could give under current circumstances”.
Shareholders will vote in May on whether to accept the offer.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
