Shree Renuka Sugars sells 27.5 pc stake to Wilmar International for Rs 517 cr

Feb 21 2014, 10:13 IST
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Shree Renuka Sugars would raise another Rs 725 crore from the proposed rights issue. Shree Renuka Sugars would raise another Rs 725 crore from the proposed rights issue.
SummaryShree Renuka Sugars sold stake to Singapore-based agri-business co Wilmar International.

stakes and board representation.

The existing promoters would continue with the management of company, while Wilmar would be "actively involved in strategic decisions".

Shree Renuka Sugars operates 11 sugar mills in India and Brazil with a total crushing capacity of 20.7 million tonne per annum and two port-based refineries with sugar production capacity of 1.7 million tonnes per year.

Wilmar's business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, specialty fats, oleochemicals, biodiesel and fertilisers manufacturing and grains processing.

It has a market cap of about USD 17 billion and revenues of USD 44.1 billion, with profit of USD 1.3 billion in FY2013.

The investment is subject to approval of shareholders, anti-trust clearances in India and Brazil and other statutory clearances as may be deemed necessary.

"As a strategic shareholder, WSH's shareholding in Renuka Sugars and the capital infusion will strengthen the company's financial and business position and also provide a further platform for growth. Wilmar's global reach and strong presence in key sugar producing countries is complementary to Shree Renuka’s business," the statement said.

Commenting on the deal, Murkumbi said: "This is a path- breaking move in the sugar business which would create a very strong partnership in some of the key global markets for sugar. Wilmar's leadership position in the edible oil business globally and its strong reach in several countries across the world would be synergistic with our large footprint in India and Brazil."

Wilmar Chairman and CEO Kuok Khoon Hong said: "India is a very important market for Wilmar. Besides the benefit for our sugar business, this venture will complement the development of our edible oils and other businesses in India."

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