Bunge (BG) Reaches Additional Agreements with Owners of Moema Group Sugarcane Mills; to Issue 3.5M Shares for the Added Stakes
Tweet Send to a FriendGet Alerts BG Hot Sheet
Price: $70.69 -0.53%
Overall Analyst Rating:
BUY (
Up)
Dividend Yield: 1.7%
Revenue Growth %: -99.9%
Overall Analyst Rating:
BUY (
Up)Dividend Yield: 1.7%
Revenue Growth %: -99.9%
Trade BG Now!
Bunge Limited (NYSE: BG) today announced that it has reached agreements to become the owner of additional interests in the Moema Group cluster of sugarcane mills located in Brazil.
As previously announced, in December 2009, Bunge entered into an agreement to become the 100% owner of Usina Moema Participacoes S.A. With the agreements announced today, Bunge will have an effective share of approximately 89% of the 15.4 million metric tons of annual crushing capacity of the Moema Group cluster and will become the sole owner of five of the six mills (Moema, Frutal, Itapagipe, Ouroeste and Guariroba) comprising the cluster.
The economic terms of the transactions announced today are consistent with those of the previously announced Moema Par transaction, except that two shareholders in one of the mills will receive cash (on a discounted basis), rather than common shares of Bunge Limited, for their interests. Bunge has agreed to issue approximately 3.5 million common shares in exchange for the additional interests announced today, bringing the total number of shares to be issued by Bunge Limited in the transactions to approximately 10.8 million and total net debt assumed to approximately $675 million. The final number of shares to be issued will be based on the amount of net indebtedness and working capital of the mills at closing.
In the coming weeks, Bunge may reach an agreement in respect of the sixth mill constituting the Moema Group cluster.
Bunge Limited has agreed to file a registration statement for the common shares to be issued to the new shareholders, which will allow the shareholders to resell their common shares from time to time. In addition, the shareholders receiving common shares of Bunge Limited have agreed, during the 18 month period after the closing, to certain volume and other restrictions with respect to sales of their common shares.
The closings of the transactions announced today are expected to occur within the next 90 days, subject to certain conditions.
As previously announced, in December 2009, Bunge entered into an agreement to become the 100% owner of Usina Moema Participacoes S.A. With the agreements announced today, Bunge will have an effective share of approximately 89% of the 15.4 million metric tons of annual crushing capacity of the Moema Group cluster and will become the sole owner of five of the six mills (Moema, Frutal, Itapagipe, Ouroeste and Guariroba) comprising the cluster.
The economic terms of the transactions announced today are consistent with those of the previously announced Moema Par transaction, except that two shareholders in one of the mills will receive cash (on a discounted basis), rather than common shares of Bunge Limited, for their interests. Bunge has agreed to issue approximately 3.5 million common shares in exchange for the additional interests announced today, bringing the total number of shares to be issued by Bunge Limited in the transactions to approximately 10.8 million and total net debt assumed to approximately $675 million. The final number of shares to be issued will be based on the amount of net indebtedness and working capital of the mills at closing.
In the coming weeks, Bunge may reach an agreement in respect of the sixth mill constituting the Moema Group cluster.
Bunge Limited has agreed to file a registration statement for the common shares to be issued to the new shareholders, which will allow the shareholders to resell their common shares from time to time. In addition, the shareholders receiving common shares of Bunge Limited have agreed, during the 18 month period after the closing, to certain volume and other restrictions with respect to sales of their common shares.
The closings of the transactions announced today are expected to occur within the next 90 days, subject to certain conditions.
You May Also Be Interested In
- Bunge Limited (BG) Raises Quarterly Dividend 11.1% to $0.30; 1.7% Yield
- Brocade (BRCD), A10 Settle Litigation; Brocade to Get $5M Cash, $70M Conv. Note
- Tessera (TSRA), Starboard Reach Agreement Over Board Composition
Create E-mail Alert Related Categories
Corporate News, Equity Offerings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
