Bunge confirms hopes to spin off Brazilian sugarcane unit in IPO

May 2, 2018 |

In Brazil, Reuters reports that Bunge confirmed it is interested to spin off its sugarcane and ethanol unit as an IPO but is testing the proverbial waters before taking a final decision by gauging the market valuation and investor appetite. The global sugar industry is going into a slump due to low sugar prices but Brazil’s focus on ethanol thanks to the recently approved RenovaBio program will create more medium-term demand for ethanol which could make the potential IPO attractive.

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