Bunge makes initial filing in Brazil for IPO of sugar milling business
Bunge Limited announced the filing of a registration request with the Brazilian Securities Commission for a potential initial public offering of Bunge Acucar & Bionergia, Bunge's sugar milling business in Brazil. Bunge has prepared the business to operate as a stand-alone company and recently obtained debt financing for the business. The 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 Acucar & Bionergia owns and operates eight mills located across the Southeast, North and Midwest regions of Brazil. With 22 million metric tons 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.