Wilmar Said to Plan Buying Stake in India’s Shree Renuka Sugars

Wilmar International Ltd. (WIL), the world’s largest palm-oil processor, plans to acquire a stake of less than 25 percent in India’s Shree Renuka Sugars Ltd. (SHRS), according to two people with knowledge of the matter.

Singapore-based Wilmar will pay less than yesterday’s closing share price for the stake in India’s largest refiner, said the people, who asked not to be identified because the deal hasn’t been made public. Shree Renuka traded at 22.05 rupees apiece at 11:47 a.m. in Mumbai, implying a value of less than 3.7 billion rupees ($60 million) for the stake.

An agreement would add to Wilmar’s sugar assets from Australia to New Zealand, Indonesia and Morocco. It is the largest cane miller in Australia and the investment would allow it to expand in India, the world’s biggest sugar consumer.

Wilmar declined to comment in an e-mail. Narendra Murkumbi, managing director of Mumbai-based Shree Renuka, wasn’t immediately available on his mobile phone.

Shree Renuka has risen 10 percent this year, giving it a market value of 14.9 billion rupees.

Shree Renuka had total debt of 84.8 billion rupees as at March 31, 2013, according to data compiled by Bloomberg. That’s up from 8.4 billion rupees in 2008.

To contact the reporters on this story: Chanyaporn Chanjaroen in Singapore at cchanjaroen@bloomberg.net; George Smith Alexander in Mumbai at galexander11@bloomberg.net

To contact the editors responsible for this story: Jason Rogers at jrogers73@bloomberg.net; Philip Lagerkranser at lagerkranser@bloomberg.net

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