PE firm plans to buy Brazilian unit of Shree Renuka Sugars
Shree Renuka Sugars Limited, an integrated sugar and bio-energy producers with business in India and Brazil is negotiating a deal to sell its Brazilian unit to a US-based private equity firm.
The company's Brazilian business is suffering due to years of low ethanol and sugar prices in the country. The company had filed bankruptcy protection for its Brazilian unit in 2015.
Representatives of the private equity firm Castlelake held talks with cane suppliers of Shree Renuka Sugar's Revati mill, located in Brejo Alegre, western Sao Paulo state to secure supplies ahead of buying the plant, reported a leading news agency.
Shree Renuka Sugars reported a net tax loss of Rs. 119.60 crore for the second quarter ended September 2017. The company has a total debt of around Rs. 9,800 crore, if the deal gets through, the company will be able to pare some of its debts.
At 10:31 hours, the stock of Shree Renuka Sugars was quoting Rs. 15.40 per share, up 0.33 per cent. While the benchmark index Nifty50 was at 10,413.75, up 35.35 points or 0.34 per cent on Tuesday.