JV partner forces SunRice to put ASX listing plans on ice

The company had been planning to de-list from the National Stock Exchange in favour of the Australian Securities Exchange to preserve grower control and allow private investors to trade its shares.

The news comes as the SunRice Board engages in a process to review its capital structure and develop a new model for the future.

The company said in a statement that the unnamed partner had decided that the capital restructure justified its own review of the joint-venture’s arrangements. It pointed out that SunRice remained committed to the listing, and enjoyed “strong support​” from both A- and B-class shareholders.

“The timing of the Capital Restructure is now being impacted by circumstances related to one of our joint venture partners; it is not being impacted by operational issues or recent media commentary regarding companies with similar capital structures​,” said SunRice chairman, Laurie Arthur.

“Indeed, maintenance of our guidance on anticipated FY16 financial results indicates that the business has continued to perform well since January 2016​.”

The statement also distanced SunRice from the disappointing financial performances of other agribusinesses “that might be regarded as having capital structures similar to that proposed by the [SunRice] capital restructure​”—namely Murray Goulburn, which last week significantly cut its profit forecast and the prices it will pay its suppliers.

“It is important to highlight that the delay in the timing of the capital restructure is not related to business performance or prevailing market conditions​,” the statement added.