COFCO is Chinese and has enlisted Keith De Lacy to boost their local credentials. Mackay have withdrawn their condition for more than 50% for their offer to proceed. 90% is required for a full compulsory acquisition of the remainder takeover under Australian corporate law. The Australian has reported that Mackay currently hold 29.9% and COFCO 26.6%.
Mackay is associated with Queensland Sugar Ltd (QSL) the former monopoly sugar marketer which had held an interest in Tully to maintain their sugar marketing arrangement. QSL has accepted the Mackay offer for its 19.9% holding.
QSL had previously used its interest to block an MSF takeover offer for Tully. MSF yesterday announced that they will cease marketing arrangements with QSL in 2014 for sugar from their recently acquired South Johnstone and Tableland Mills.
In any hotly contested corporate bidding war history suggest it may be wiser to be a seller than a buyer?
All bids for Tully expire in the first week of July.