Shree Renuka Sugars to acquire Brazilian Vale Do Ivai Rs1,112 crore
12 Nov 2009
Armed with Rs560 crore from a July OIP issue, Mumbai-based Shree Renuka Sugars has agreed to acquire Brazilian sugar and ethanol producer Vale Do Ivai (VDI) for Rs1,112 crore ($240 million).
The country's largest sugar refiner with a capacity of 4,000 tons a day, will be first Indian sugar company making an overseas acquisition.
The VDI acquisition will bring SRSL two sugar and ethanol production facilities located in the Southern State of Parana with a combined cane crushing capacity of 3.1 million tons annually as well as more than 18,000 Ha of land for cultivation on long lease.
VDI has currently a third production facility in the State of Minas Gerais which shall be spun off to the current shareholders of VDI as a consideration for the acquisition.
Shree Renuka will acquire 100 per cent of the equity capital of VDI for approximately $82 million and the balance is the assumed debt which is to be repaid over 8 years.
Shree Renuka said that the acquisition has received approval of leading creditors of VDI and the other remaining conditions are expected to be completed over the next 45 days.