Renuka Sugars in talks to buy stake in Balrampur Chini
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15 Dec 2009
Today, the Shree Renuka Sugars said, “It is in talks with
Balrampur Chini Mills to acquire promoters' stake in the country's second
largest sugar firm.”
The company's Chief Financial Officer K K Kumbhat told media when asked whether
the company was in talks to get Balrampur Chini Mills.While Renuka Sugars is yet
to offer any price, discussions between the two firms have started a month back,
"The talks are very much at a preliminary stage at the moment.” |
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He added, “As of now, we have not given any price quote. Our talks have not
reached to this level.” |
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When contacted Balrampur Chini Managing Director Vivek Saraogi said: "I
don't want to comment on market speculation."
In October, reports had said Balrampur Chini promoters were in talks to
sell their total holding of 36.67 pct to Bajaj Hindusthan. The Kolkata-based
company, however, denied the reports.
Balrampur Chini has nine sugar factories in eastern Uttar Pradesh and has a
capacity to crush 73,500 tonnes of sugarcane per day. If the deal
materialises, Renuka Sugars, which at present has a cane crushing capacity
of 60,000 tonnes a day, would become second largest sugar manufacturer.
Bajaj Hindusthan is the country's largest sugar mill with a total cane
crushing capacity of 1, 36,500 tonne per day.
Shree Renuka had recently acquired Brazil-based sugar and ethanol producer
Vale Do Ivaí (VDI) for USD 82 million. It also assumed debt, which need to
be repaid over eight years. The enterprise value of VDI is USD 240 million.
At 14.40, Shree Renuka Sugars shares were trading up by 4.29 pct at Rs
217.35 on the BSE, while that of Balrampur China was down by 3.63 pct at Rs
136.80.
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