Business
Initial Acquisition & Update
Initial Acquisition & Update.
About this update from Beacon Energy Plc
[{"type":"text","content":"\n Clean Energy Brazil PLC\n27 March 2007\n\n\n27 March 2007\n\n CLEAN ENERGY BRAZIL PLC\n ('CEB' or 'the Company'')\n\n Completion of initial US$130m Investment\n Positive update on new opportunities\n\nThe Board of Clean Energy Brazil, a leading specialist investment company\nfocused on Brazil's sugar/ethanol industry, is pleased to announce the\ncompletion of its initial investment of approximately US$130m in Usaciga Acucar,\nAlcool e Energia Electrica S.A. ('Usaciga' or the 'Investment'), and to provide\na positive update on new opportunities.\n\nThe Directors are pleased to note that since the Company's successful IPO in\nDecember 2006 the gross initial proceeds of approximately $200 million\n(equivalent) have now been invested in Usaciga with the balance being\nprovisionally allocated to the development of CEB's existing greenfield\nportfolio.\n\n\nUsaciga\n\n • CEB's investment of approximately $130m for a 49% indirect stake in\n Usaciga has now been transacted as planned at an attractive multiple of\n US$79 per tonne of cane crushing capacity.\n\n • The Investment comprises interests in a producing sugar/ethanol mill,\n several greenfield developments, a bulk sugar terminal and an ethanol\n trading company.\n\n • Usaciga is now poised to increase significantly its cane crushing\n capacity over the next two to three years by utilising the CEB investment\n proceeds, active management expertise and debt refinancing with the aim of\n creating a mill company with a cane crushing capacity of more than 8 million\n tonnes per annum.\n\n • Prior to completion of the Investment - at no additional cost to CEB -\n Usaciga has:\n\n • acquired rights over Santa Cruz de Montecastelo, a new greenfield\n project with an anticipated crushing capacity of 2 million tonnes of\n cane per annum; and\n\n • agreed to increase its ownership of Rio Parana, a greenfield project\n in Eldorado city, Mato-Grosso do Sul state, from 33% to 100%, with an\n anticipated crushing capacity of 2.3 million tonnes of cane per annum.\n\n • CEB has now assumed an active role in the management of Usaciga,\n significantly enhancing operational efficiencies and assuming broad\n responsibility for hedging strategy. As a direct result, the operational\n management team is being strengthened with highly experienced personnel.\n\n\nExisting Greenfield Oppo...