Global agribusiness and food major, US-headed Bunge Ltd has announced 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.
The registration request with the Brazilian Securities Commission was made May 15 and, according to a statement, Bunge has prepared the business to operate as a stand-alone company and recently obtained debt financing for the business.
The filing further progresses the company’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 tonnes of annual crushing capacity, 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.