BRAZIL: Bunge files registration request for IPO

Published: 05/15/2018, 5:15:38 PM

Bunge Limited announced on Tuesday the filing of a registration request with the Brazilian Securities Commission for a potential initial public offering ("IPO") of Bunge Açúcar & Bionergia, Bunge's sugar milling business in Brazil, reports Sugaronline.

Bunge has prepared the business to operate as a stand-alone company and recently obtained debt financing for the business. Tuesday’s filing further progresses Bunge's previously stated intentions to focus on its Agribusiness and Food & Ingredients businesses and enables the company to move forward with an IPO, subject to market conditions and valuation. Following the execution of an IPO, Bunge would be the majority shareholder, enabling it to participate in future value creation driven by the stand-alone company's growth and cyclical improvement in global sugar market conditions.

Bunge Açúcar & Bionergia owns and operates eight mills located across the Southeast, North and Midwest regions of Brazil. With 22 million metric tonnes of crushing capacity per year, it has the flexibility to produce a mix of ethanol and sugar, and generates renewable electricity through its cogeneration facilities to self-sufficiently power all of its mills and sell surplus electricity to the Brazilian power grid.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction. The offer and sale of Bunge Açúcar & Bionergia's shares in Brazil is subject to prior registration of the offering and issuer with the Brazilian Securities Commission. The offer and sale of Bunge Açúcar & Bionergia's shares has not been and will not be registered under the U.S. Securities Act or under the securities laws of any U.S. state.