MUMBAI -- India's Shree Renuka Sugars Ltd. said Wednesday it has acquired Brazil's Vale Do Ivai S.A. Acucar E Alcool for about $82 million, giving the Indian company an entry into the world's largest sugar producing and exporting country.
Shree Renuka Sugars will also take over the Brazilian sugar and ethanol producer's debt, which is to be repaid over eight years. The Indian company said the buyout has received approval from VDI's leading creditors and that the acquisition will be completed over the next 45 days.
In its statement to the Bombay Stock Exchange, the Indian company didn't specify how much debt was taken on.
Shree Renuka Sugars said the acquisition gives it an opportunity "to grow and expand its production base in the centre-south region of Brazil."
VDI, which has an enterprise value of $240 million, has a cane crushing capacity of 3.1 million metric tons a year through its two sugar and ethanol production facilities.
Shree Renuka Sugars has an annual cane crushing capacity of about 7 million tons, according to a company executive, who didn't want to be named.
Motilal Oswal Investment Advisors is acting as strategic advisor to Shree Renuka Sugars for the acquisition, the statement added.
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