COFCO announced controling 61.25% equity of Tully Sugar Company, Australia, on July 5, which included the 6.91 percent points sold by Bunge, another bidder. This position would enable COFCO to better fulfill its obligations in this acquisition. Bunge's withdrawal indicated its recognition of COFCO's efforts in building long term partnership with Tully, local communities and local farmers.
COFCO issued its nonbinding acquisition offer to Tully on April 16 through one of its subsidiary Top Glory, intending to buy out the equity for 41 Australian dollars per share. COFCO increased its offer twice and set the final price at 44 Australian dollars.
Mr. Patrick Yu, the President, led a team to Tully for field trip during which Tully's board made an public announcement to call on its shareholders to accept COFCO's offer.
COFCO made this move to expand its Australian market and increase its market share there, which also indicated Tully's significance in COFCO's strategy.