Bunge ups ownership in Brazil sugarcane mills
February 8, 2010
by Eric Schroeder
WHITE PLAINS, N.Y. — Bunge Ltd. on Feb. 5 completed the acquisition of certain interests in the Moema Group cluster of sugarcane mills in Brazil. Following the closing, Bunge now owns 100% of three of the mills (Moema, Frutal and Ouroeste), 70% of a fourth mill (Guariroba) and approximately 44% of a fifth mill (Itapagipe).
Bunge, which issued approximately 9 million common shares at closing, said the final number of shares to be issued to the sellers is subject to a post-closing adjustment based upon the net debt and working capital of the mills as of the closing.
Bunge expects to complete the acquisition of the remaining interests in the Guariroba and Itapagipe mills in the near future. Once those interests are acquired, Bunge will own 100% of five of the Moema Group mills, with a total sugarcane milling capacity of 13.7 million tonnes. Bunge will not assume any ownership interest in the Vertente mill.