Imperial Sugar Bids for Holly Sugar
SUGAR LAND, Texas (AP) _ Imperial Sugar Co. has offered to acquire rival Holly Sugar Co.
The bid, announced Monday, comes a week after a New York investment partnership offered $91 per share for two-thirds of Holly’s outstanding stock.
Imperial President Robert C. Hanna confirmed his company’s bid for Holly, but he declined further comment on the offer, which expires at 11 a.m. CDT Wednesday.
Imperial is based in Sugar Land, a few miles southwest of Houston. Holly is based in Colorado Springs, Colo, where an annual stockholders’ meeting, scheduled for Tuesday, was postponed until Oct. 29 ″in view of the matters referred to in its recent press releases,″ Holly officials said.
Imperial, a privately-held company, processes raw sugar from sugar cane at its Sugar Land refinery, the fourth largest in the country.
Holly is the leading processor of sweetener from sugar beets. It had $317 million in sales and earned $4.9 million for the fiscal year 1987 ending March 31.
Analysts said it is unclear whether Holly invited the Imperial bid to thwart the $91-a-share offer from Plum Associates, a Melville, N.Y., partnership which owns 7.4 percent of Holly.
The Imperial offer proposes that each share of Holly be converted into the right to $68 in cash plus one share of common stock ownership plan. The cash portion of the offer totals $76.2 million.
Shares in the combined company also would be sold to an employee stock ownership plan for about $29 per share. Holly shareholders then would own about 23 percent of the combined company and the stock ownership plan would own a like amount.