Mill deal deadline due to expire
TODAY was the deadline set for the conditions precedent to be satisfied between the Isis Central Sugar Mill and Pakistan company Almoiz Industries’s proposed transaction.
Early this week the NewsMail reported on the tension between the proposed transaction between the two companies after allegations of misconduct arose in the findings of the Government of Pakistan’s Inquiry Commission Report into sugar prices.
According to the report, there were seven “major observations” made, including:
“Benami transactions in the scale of sugar stock; the purchase of sugarcane below the minimum support price; fictitious ‘advancements from customers’ used for parking differential cane payment amount illegally withheld from growers; concealment of Income Tax by showing reduced profit; profiteering by showing increased cost of production; illegal weight deductions of sugarcane and beet; and, falsification of accounts and double/parallel record keeping”.
Last year ICSM shareholders met and 84 per cent voted in favour of a proposal for Pakistan-based Almoiz Group to invest up to $35 million in ICSM.
Part of the transaction process includes gaining regulatory approval from the Bank of Pakistan and orders from the Supreme Court of Queensland.
ICSM board chairman Peter Russo penned a letter to shareholders on Saturday, noting that the Pakistan Sugar Mills Association “has rejected the findings, conclusions and recommendation of the report”, with intentions to “share a more detailed response about the contents of the report in due course”.
While no update could be provided yesterday, a spokesperson for ICSM previously stated that the ICSM Board determined that Almoiz Industries must provide ICSM with a “satisfactory response to the allegations”.
“The conditions precedent must be satisfied by Friday, May 29 for the proposed transaction to proceed,” the spokesperson said. “The deadline can only be extended with agreement from both parties.
The NewsMail attempted to contact to Almoiz Industries Limited for comment.