Business
First day of dealings
First day of dealings.
About this update from Beacon Energy Plc
[{"type":"text","content":"\n Clean Energy Brazil PLC\n18 December 2006\n\nClean Energy Brazil Plc\n\n('CEB' or 'the Company')\n\nClean Energy Brazil admitted to AIM\n\nClean Energy Brazil plc, an investment company with a mandate to invest directly\ninto Brazil's sugar and ethanol industry, is pleased to announce its admission\nto trading on the AIM Market of the London Stock Exchange (which is expected to\noccur at 8am today).\n\nNumis Securities conceived and developed the CEB concept, built the management\nteam, and has backed the company alongside institutional investors. Numis is\nalso a major shareholder in Temple Capital Partners, which will manage CEB's\nfunds.\n\nAdmission Statistics\n\nPlacing Price per Ordinary Share £1\n\nNumber of Ordinary Shares in issue on Admission 100 million\n\nGross proceeds of the Placing £100 million\n\nMarket capitalisation at the Placing Price £100 million\n\nWarrants which are also expected to commence trading on AIM at 8am today have\nbeen issued on the basis of 1 warrant for 4 ordinary shares. Placees will also\nreceive shares in Temple Capital Partners Limited.\n\nOverview\n\n• An AIM listed investment company, designed to take advantage of the\ngrowth potential and the consolidation opportunities in Brazil's sugar and\nbioethanol industry\n\n• CEB has agreed an initial investment of $137m into a fully integrated\nexisting sugar/ethanol asset with associated greenfield projects, full due\ndiligence has been performed and the investment agreement has been finalised\n\n• CEB is seeking to pay a 5p dividend in respect of the period to 30\nSeptember 2007, and is targeting an aggregate IRR of 25% on capital invested\n\n• CEB's Non-Executive Chairman is Antonio Monteiro de Castro, the current\nchief operating officer of British American Tobacco plc\n\nStrategy\n\nCEB proposes to invest in both existing sugar and bioethanol production units\nand in new greenfield projects. Investing in new projects will capture the\ninherent development premium, whereas acquiring equity in existing assets will\ncapture immediate cash flows.\n\nThe target assets comprise agricultural sugar cane plantations, industrial\nmilling facilities, sugar and ethanol production facilities, and associated\nexport logistics infrastructure.\n\nThere is significant scale in the sugar cane industry in Brazil; the current\ntotal land dedicat...