It’s cheaper: Shree Renuka reworks Equipav deal | business | Hindustan Times
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It’s cheaper: Shree Renuka reworks Equipav deal

business Updated: Jun 23, 2010 23:44 IST

The country’s largest sugar refiner, Shree Renuka Sugars, on Wednesday said it will acquire 50.34 per cent stake in Brazil's Equipav AA for Rs 1,151 crore, 25 per cent less than what the two firms had agreed on earlier.

In February, the company had announced it would buy 50.79 per cent stake in Equipav for Rs 1,530 crore.

“The company has been successful in concluding a revised agreement to acquire a controlling stake in Equipav,” Shree Renuka Sugars said in a filing to the Bombay Stock Exchange.

The company re-negotiated the deal owing to a sharp fall in sugar prices globally.

As per the new agreement, Shree Renuka will invest Rs 1,151 crore ($250 million) in Equipav leading to a majority and controlling stake of 50.34 per cent.

“This values Equipav AA at an enterprise value of $1.147 billion,” the filing said.

This is Shree Renuka's second buy in Brazil this year, after the March 19 buyout of Vale do Ivai S A Acuar e Alcool.