AUSTRALIA: Mackay Sugar shopping around co-gen plant to domestic and foreign investors
Published: 07/14/2017, 10:49:12 AM
Mackay Sugar Limited is reportedly after A$100 million for its co-generation plant and is shopping it around to Australian and international power investors, according to Australia's Daily Mercury newspaper.
The Australian Financial Review's Street Talk reported Friday morning the sugar miller had hired advisers and told clients there would be a sales campaign.
The co-generation plant is the most profitable part of Mackay Sugar's business at the moment as it turns bagasse into renewable energy.
This move to sell the co-generation plant was outlined in Kidder Williams' report to turn the financial performance of Mackay Sugar around.
Mackay Sugar's board endorsed the report and has since implemented the other recommendation of charging growers a A$2 levy for every tonne they get crushed.
Under Kidder Williams' plan, the sale of the co-generation plant was supposed to bring in about A$90 million which would be used to pay down Mackay Sugar Limited's A$212 million debt.
It would be the largest contribution for the company to reach its goal of A$140 million to pay off debt and invest in improving the mills.