Bunge considering flotation of stake in Brazilian sugar mills after failing to find buyers
02 NOV 2017
Bunge [NYSE:BG], a White Plains, New York-based agribusiness, has indicated that it may float a stake in its Brazilian sugar processing operations, the Financial Times reported. The report quoted Bunge Chief Executive Soren Schroder, who said the sugar mills will remain under the company’s ownership but will have a financial structure allowing Bunge to separate them “very quickly” at the appropriate time.
The company said in its 3Q17 results announcement of Wednesday, 1 November that it is still committed to reducing its exposure to sugarcane milling and is close to completing a financial separation of the business.
Bunge announced in October 2013 that it was considering a sale of its Brazilian sugar and ethanol businesses.
Schroder, speaking on Wednesday, said the sale process had taken longer than expected and suggested that it had struggled to find buyers or partners for the sugar mills. However, Bunge would have more control over a flotation, the CEO added.
Bunge’s Chief Financial Officer Thomas Boehlert said the sugar mills are now likely to post a USD 75m (EUR 64.3m) operating profit, the report added.