Renuka - Balrampur Deal Off - Over Valuation Differences
Renuka Sugars has ended negotiations with Balrampur Chini over differences over valuation. Renuka Sugars were offering Rs 180 per share, while Saraogis - the promoters of Balrampur Chini were seeking Rs 220 a share.
A Renuka official said that the company will now look to buyout smaller sugar firms that are up for sale.
Earlier in Nov, Shree Renuka acquired Brazilian Vale Do Ivai SA for $82 mn. The company is also planning to bid for Equipav SA Acucar e Alcool, the sugar and alcohol assets of Brazil’s Equipav Group, and is in exclusive talks with several other Brazilian producers for acquisitions.
An I-banker with a different view over the deal said that Shree Renuka does not want to enter into Uttar Pradesh at this stage where bulk of Balrampur Chini’s sugar mills are located. Uttar Pradesh has seen a conflict between sugarcane farmers wanting a higher price than millers were willing to offer.
Earlier, negotiations with Bajaj Hindustan fell through due to differences over the payment schedule. Bajaj Hindustan had proposed to pay after receiving the approval for the mandatory open offer, while Saraogis wanted the proceeds immediately.
Also Read
Renuka To Buy Balrampur's Promoter Stake
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