BRAZIL: Raizen wins auction for two mills owned by Tonon Bioenergia
Published: 06/19/2017, 9:34:34 AM
Brazil's Raízen Energia SA, the world's largest sugar maker, on Friday won a judicial auction for two sugar mills owned by Tonon Bioenergia SA, after its bid of BRL823 million (US$250 million) was approved by creditors, Raízen said in a securities filing, according to Reuters.
The bid presented by Raízen, a joint venture between Cosan SA Industria e Comercio and Royal Dutch Shell, beat the only other offer in the auction of BRL434 million from Suem do Brasil, a company which packages and export sugar.
Reuters reported on Wednesday that lawyers representing creditors had seen the proposals by the deadline for interested companies to bid, on June 13, and knew Raízen's bid was the biggest.
Tonon Bioenergia SA is under bankruptcy protection and the auction on Friday was part of a restructuring plan approved by creditors in April.
Raízen owns 24 sugar and ethanol mills in Brazil. Three are in the region where the two Tonon plants on sale are located, a detail valued by sugar groups as they seek to concentrate operations in clusters to reduce cane transportation costs.
The two Tonon mills, named Santa Cândida and Paraíso, have a combined annual cane crushing capacity of 5.7 million tonnes. Tonon aims to retain its third mill, in the neighboring Mato Grosso do Sul state.
Raízen said that if the operation is concluded, it expects to operate total annual crushing capacity of approximately 73 million tonnes of sugarcane.