Tereos Internacional Succeeds in $180m Capital Increase

Launched on June 15th on the São Paulo stock exchange (Brazil) at a price of R$2.60 per share, the capital increase was fully subscribed, and enabled R$369.6 million to be raised (around €148 million, $180m).

13 Aug 2012 --- Tereos Internacional, a global player in the production of sugars, alcohol and starch from sugar cane and cereals, and a subsidiary of the French cooperative group, Tereos, has announced the conclusion of a capital increase intended to support the development of its cereal-growing activities in France and internationally. 

Launched on June 15th on the São Paulo stock exchange (Brazil) at a price of R$2.60 per share, the capital increase was fully subscribed, and enabled R$369.6 million to be raised (around €148 million, $180m). This amount corresponds to the maximum amount of 142.1 million new shares outlined as part of the operation. Upon completion of this issue, Tereos holds 69.6% of the capital of Tereos Internacional.

This capital increase strengthens the development of Tereos Internacional’s cereals division, both in France and internationally.

In France, the operation will allow the investments made on the Lillebonne industrial site to be pursued. The aim of the programme is to adapt the production site, which was initially dedicated to ethanol production.

New food productions and applications shall be developed there to make improved use of processed cereals. The capital increase will also support the Group in its international development in Brazil and China, two high-growth markets in which Tereos Internacional first established itself in 2011. In September 2011 in Brazil, Tereos Internacional purchased Syral Halotek, a Brazilian cassava starch producer, and built a new corn-starch plant there. Also in 2011, Tereos Internacional entered into a partnership with the Wilmar Group in Singapore, Asia’s leading agribusiness group, for the development of a wheat starch business in China. The partnership's first plant is currently being built in Canton, and is scheduled to become operational in 2013. 

Alexis Duval, CEO of Tereos Internacional, said: “I am delighted with the success of the capital increase that has just been completed. It is a symbol of the strong commitment of our historic partners, both cereal-growers and financiers, in supporting Tereos Internacional’s development process and of their trust in the company’s future prospects. This operation supports our cereals division in its development, both in France to make use of processed cereals and internationally to develop its presence on high-growth markets.”