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Shree Renuka Sugars to acquire Brazilian Vale Do Ivai Rs1,112 crore news
12 November 2009

Armed with Rs560 crore from a July OIP issue, Mumbai-based Shree Renuka Sugars  has agreed to acquire Brazilian sugar and ethanol producer Vale Do Ivai (VDI) for Rs1,112 crore ($240 million).

The country's largest sugar refiner with a capacity of 4,000 tons a day, will be first Indian sugar company making an overseas acquisition.

The VDI acquisition will bring SRSL two sugar and ethanol production facilities located in the Southern State of Parana with a combined cane crushing capacity of 3.1 million tons annually as well as more than 18,000 Ha of land for cultivation on long lease.

VDI has currently a third production facility in the State of Minas Gerais which shall be spun off to the current shareholders of VDI as a consideration for the acquisition.

Shree Renuka will acquire 100 per cent of the equity capital of VDI for approximately $82 million and the balance is the assumed debt which is to be repaid over 8 years.

Shree Renuka said that the acquisition has received approval of leading creditors of VDI and the other remaining conditions are expected to be completed over the next 45 days.


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Shree Renuka Sugars to acquire Brazilian Vale Do Ivai Rs1,112 crore