Dreyfus about to take over Santelisa
Valor Econômico
The take over of Santelisa, from Sertãozinho (SP), by the French group Louis Dreyfus is about to take place. The companies got to an agreement on the terms of the merger, which will turn the multinational into the second greatest producer of sugarcane of Brazil, with the crushing of nearly 40 million tons, behind Cosan. The forecast is that the operation should be concluded in the end of August, as of the 20th, affirmed to Valor a source close to the negotiations.
The new company that will arise from the union should not have a greater participation of the BNDESPar, branch of participations of the BNDES (Brazilian Development Bank), as both the companies wanted, but it will include new investors that must inject new money. The BNDESPar, with a 6.4% share in Santelisa, does not want to increase its participation, since the indebtedness of Santelisa and Louis Dreyfus amounts to nearly R$ 5 billion (US$ 2.63 billion). The time for the conclusion of the merger was expected for July 31, but since the process includes negotiations with small- and medium-sized banks, the operation should be over next month. Also, the conversion of part of the debt into capital is in progress in this operation. "With that, the participation of the Biagi and Junqueira families, which hold nearly 65% of Santelisa, will be diluted and stay at nearly 20%", said the source. The same will happen with participation of the BNDESPar.
With an income of nearly R$ 1.5 billion (US$ 789.5 million) and crushing of almost 20 million tons of sugarcane, the assets of Santelisa were also the target of ambition regardless of the preferential agreement entered into with the LDC. Formed by five plants (Santa Elisa, Vale do Rosário, MB, Jardest and Continental), the company controls the trading Crystalsev, with nearly 70% of participation. Due to the delicate situation of the company, Santelisa sold important participations, such as the partnership with the CNAA (National Company of Sugar and Alcohol), in which it held 25%, and also its participation in Amyris, by means of which Crystalsev withheld 50%.