IndoAgri takes 50% of Brazilian sugar mill business for 23.6m real
INDOFOOD Agri Resources (IndoAgri) has invested 23.6 million Brazilian real (S$9.6 million) to take a 50 per cent stake in a joint venture to acquire a sugar mill business in Brazil.
IndoAgri's partner, JF Investimentos, contributed an equal amount to the initial capital of the joint venture, Canápolis. IndoAgri is primarily an Indonesia-based palm oil producer, although it also engages in the cultivation of rubber, sugar cane and other crops.
Canápolis in December 2017 acquired a sugar mill in Minas Gerais, Brazil, with an annual cane crushing capacity of 1.8 million tonnes and 6,048 hectares of land through a court auction as part of the bankruptcy of the asset's previous owner. The acquisition price is about 137.8 million real, to be paid in four installments. The final payment is scheduled for June 2019.
Operations at the mill are expected to begin in 2020 following cane planting and rehabilitation of the mill. Capital expenditures for the setting up will be funded through bank borrowings.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
TikTok tells advertisers: ‘We are not backing down’
EV automakers get reprieve in US tax credit rules
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance
HSBC asked by US$890 billion investor group to set energy goal
BHP’s biggest rivals sit on the sidelines of Anglo M&A drama