Ebro Foods: to buy Australia’s SunRice for 440 million EUR

Madrid / ES. (epg) Further to an announcement of October, Ebro Foods has entered into a Scheme Implementation Agreement (SIA) with Ricegrowers Limited, trading as SunRice. Under the binding terms and conditions of the SIA Ebro Foods would acquire 100 percent of the capital of SunRice on the basis of an Enterprise Value of approximately 600 million AUD (440 million EUR).

As part of the transaction, Ebro Foods will enter into a Continuity Undertaking Deed Poll, which sets out a number of key commercial principles related to SunRice and its business after the acquisition. This includes the undertaking of Ebro Foods to purchase rice crops, the associated pricing mechanisms, the establishment and role of a Grower Advisory Board and the commitment to research and development as well as community and grower relations.

The transaction will be effected by way of a scheme of arrangement pursuant to Australian law and is subject to the approval of SunRice shareholders and the Australian courts. SunRice shareholders are expected to vote on the transaction in March and, subject to satisfaction of all of the conditions in the SIA including regulatory approvals, it is anticipated that completion would occur in April 2011.

The board of SunRice unanimously recommend that its shareholders vote in favour of the transaction, subject to no superior proposal emerging and confirmation by an Independent Expert that the transaction is in the best interests of its shareholders. Ebro Foods is advised by Morgan Stanley and DLA Phillips Fox on this transaction.