*MUMBAI:* Sugar major, Shree Renuka Sugars Ltd (BOM:532670) on Wednesday said it has concluded a revised agreement with Equipav AA to acquire controlling stake in the Brazilian sugar and ethanol producer.
In a notice to Bombay Stock Exchange, the company said it will now pay Rs 11.51 billion for acquiring 50.34% stake in Equipav instead of Rs 15.30 billion decided earlier. The company had earlier agreed to buy about 51% stake in Equipav in February, but the deal has now been renegotiated because of some differences over some conditions and a slump in the global sugar market, according to media reports. Equipav has two very large mills in southeast Brazil having a combined cane crushing capacity of 10.5 million tonnes a year and has a co-generation capacity of 203 megawatt, Shree Renuka said. The mills are to be expanded to a combined capacity of 12 million tonnes a year while co-generation capacity will be upped to 295 megawatt for a capital expenditure of 218 million reais (Rs 5.6 billion), it said. Shree Renuka said the investment it is making in Equipav will fund the capital expenditure, partly pay down debt and increase working capital. This is Shree Renuka's second acquisition in Brazil this year. On Mar 19, it completed the buyout of Vale do Ivai S.A. Acuar e Alcool, another sugar and ethanol producer in that country. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
