McCullough Robertson advises on investment into Mackay Sugar
McCullough Robertson advised on the $120 million investment by Nordzucker AG in Mackay Sugar Limited
Leading independent Australian law firm McCullough Robertson Lawyers advised Australia’s second-largest sugar milling company, Mackay Sugar Limited, on a recapitalisation and investment by German sugar manufacturer, Nordzucker AG.
Nordzucker AG, one of Europe’s leading sugar manufacturers, acquired a 70% controlling interest in the share capital of Mackay Sugar through an investment of equity and debt of $120 million.
McCullough Robertson also advised Mackay Sugar on the refinance of its existing senior debt with Rabobank and NAB. The new facilities were arranged by Rabobank.
Leading the transaction was Brisbane-based corporate partner, Peter Williams, who was supported by lawyer Jeremy Harrison, senior associate Meg Morgan and graduate Georgia Huxley. The refinancing was led by finance partner Wei Lim and supported by senior associate Emile McPhee.
Commenting on the transaction, Mr Williams said: “We are pleased to have had the opportunity to advise our long-standing client, Mackay Sugar, on this significant transaction. The deal had to be structured in a way that created a future for the business, which was complex given the number of stakeholders involved including growers, shareholders, financiers, noteholders, counterparties and the State Government.”
“Mackay Sugar is one of the largest employers in the Mackay region. The investment by Nordzucker is a great result for the company, its shareholders and the community of Mackay. As a firm, McCullough Robertson continues to support the businesses and people in our regional and remote communities.”
Mackay Sugar undertook a comprehensive 18-month long worldwide search to find a partner to invest in the business and improve milling performance.
This acquisition completed on 31 July 2019, following an overwhelming majority vote by shareholders in support of the deal and the earlier sale of the Mossman mill to Far Northern Milling Pty Ltd.
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