Bunge Files for Potential IPO of Brazilian Sugar Company | 2018-05-16

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WHITE PLAINS, NY – Bunge Ltd. filed on May 15 for registration with the Brazilian Securities Commission for a possible initial public offering of Bunge Açúcar & Bionergia, the company’s sugar business in Brazil.

Bunge Açúcar & Bionergia owns and operates eight factories located in the Southeast, North and Midwest regions of Brazil. The company has a crushing capacity of 22 million tonnes per year, as well as the flexibility to produce a blend of ethanol and sugar. The company also produces renewable electricity through its cogeneration facilities to independently power all of its factories and sell excess electricity to the Brazilian power grid.

Commenting on the filing in a May 16 presentation at BMO Capital Markets’ Farm to Market conference in New York City, Soren W. Schroder, CEO of Bunge, called the filing a significant milestone for the division.

“It’s a big step… in the sense that we have a business that is now ready to stand on its own, and it’s really a matter of when we activate it,” Mr. Schroder said. “The preparation and work to get to this point has been important, starting with getting the business to perform positively in terms of EBIT and to cover more than all CapEx and other business requirements,” therefore it is a positive cash. So that was a major business, and another big credit to the team that made it, and she’s now promoting that segment.

The decision to potentially separate the Brazilian sugar business builds on the company’s previously stated intentions to focus on its agribusiness and food and ingredients businesses.

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