Singaporean agribusiness Indofood Agri Resources' Brazilian joint venture, Companhia Mineira de Acucar e Alcool (CMAA), has invested in a sugar asset in Brazil.
Indofood Agri said CMAA had entered into an arrangement with JFLIM Participacoes, under which JFLIM will transfer its fully owned subsidiary, Vale do Pontal Acucar e Alcool, to CMAA. Under the agreement, CMAA will issue new shares to JFLIM based on an agreed valuation of about 75.9 million Brazilian real ($26.5 million), following which JFLIM will have a 30 percent stake in CMAA.
Indofood said that the deal will enable CMAA to expand its footprint in the sugar and ethanol industry in Brazil with total annual cane crushing capacity increasing from 5.8 million tonnes to 8.3 million tonnes after the acquisition.
Indofood Agri and JF family will both retain a 35 percent stake each in CMAA. JF family will maintain its 50 percent interest, direct and indirect via JFLIM, in CMAA, whereas Rio Grande will own an effective 15 percent interest in CMAA.