Shree Renuka Sugars renegotiates Equipav deal
23 Jun 2010
Shree Renuka Sugars, India's biggest refiner, has successfully renegotiated its February 2010 acquisition price with Brazilian company Equipav SA Acucar e Alcool that will enable it to take a controlling stake in it at a saving of $79 million.
On 22 February 2010, Shree Renuka had said that it agreed to pay $329 million (Rs1,530 crore) for a 50.79-per cent stake in Equipav, subject to lenders to Equipav approving a restructuring of debt of the Brazilian company. (See: Shree Renuka buys sugar maker Equipav in second Brazilian deal)
As on 31 December 2009, Equipav had debt of Rs3,821 crore, which was being restructured by its lenders.
As per the new terms of the deal, Shree Renuka will now pay $250 million for a 50.34 per cent stake, valuing Brazil's seventh-largest sugar maker at $1.147 billion.
Shree Renuka renegotiated the deal and Equipav's lenders agreed to reduce a significant amount of debt, where the Belgaum, Karnataka-based company will now repay the debt in10 years instead of the 8 years agreed earlier.
Equipav is Brazil's seventh-largest sugar maker with a cane crushing capacity of 10.5 million tonnes a year at two plants in Sao Paolo.
