Agribusiness giant Wilmar International, Ltd is in final negotiations to acquire a 25% stake in Shree Renuka Sugars, India’s largest sugar manufacturer. The deal would help Shree Renuka cut its significant debt it amassed upon buying controlling stakes in Equipav SA Acucar e Alcool, now renamed Renuka do Brasil and Renuka Vale do Ivai SA. Shree Renuka is expected to issue fresh shares to Wilmar through a preferential allotment which at the rumored price per share will value the deal at over US$100 million. Shree Renuka is a global agribusiness and bio-energy corporation led by the Murkumbi family whose stake in the company upon completion of the deal will decrease from 38.86% to 30%. In the year ending March 31, 2013 Shree Renuka reported a loss of Rs374 crore (US$60.6 million) on revenues of over Rs10,000 crore (US$1.6 billion). In the six months ending September 30, 2013the company’s losses were Rs184 crore (US$29.8 million). The firm was considering selling its Brazilian assets but has since decided against the move in light of the Wilmar investment. Wilmar is a major global agribusiness group with interests in palm oil cultivation, oilseed crushing, edible oil refining, sugar milling and refining, biodiesel, grain processing, fertilizer manufacturing, and oleochemicals.
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