Business
Investment & Placing
Investment & Placing.
About this update from Beacon Energy Plc
[{"type":"text","content":"\n Clean Energy Brazil PLC\n11 December 2007\n\n11 December 2007\n\n CLEAN ENERGY BRAZIL PLC\n ('CEB', the 'Company' or the 'Group')\n\n $64 million investment in Unialco MS and £20.8 million Placing\n\nClean Energy Brazil plc, a leading specialist investment company focused on\nBrazil's sugar cane/ethanol industry, announces today that the Company has\nconditionally raised approximately £20.8 million before costs through a placing\nof 21,900,000 new Ordinary Shares of 1 pence each (the 'Placing Shares') at a\nprice of 95 pence per share (the 'Placing Price') with existing and new\ninstitutional investors, as well as certain directors of the Company (the\n'Placing'). The Placing is being underwritten by Numis.\n\nThe Company intends to use the net proceeds of the Placing to invest in Unialco\nMS. The Directors believe that Unialco S/A, CEB's investment partner in Unialco\nMS, is one of the most respected companies in the Brazilian sugar and ethanol\nindustry.\n\nHIGHLIGHTS\n\n •The Group has entered into an agreement with Unialco S/A in relation to\n Unialco MS, a holding company which, it is intended, will control Alcoolvale\n (an operating sugar cane plantation, with an associated sugar mill, ethanol\n distillery and sugar factory), Canavale (an operating sugar plantation with\n associated agricultural services) and Dourados (a well advanced greenfield\n sugar cane plantation with a planned sugar mill, ethanol distillery and\n sugar factory located in Mato Grosso do Sul state)\n\n •The agreement contemplates the creation of a joint venture in which CEB\n would have a 33 per cent. equity interest for an investment of approximately\n US$64 million being US$37 million in cash and approximately US$27 million by\n the issue of 13,863,929 Consideration Shares (at a price of 95 pence per\n share) to Unialco MS\n\n •Michael St Aldwyn, a Director of CEB, and Peter Thompson, Chairman of TCP\n (CEB's Investment Adviser) intend to subscribe for 52,632 shares and 105,264\n shares, respectively, as part of the Placing\n\n •The Group's investment in the joint venture could be used to expand\n Alcoolvale's crushing capacity\n\n •The investment could facilitate a strategic alliance between the Group\n and a leading producer in the sector which could lead to further joint\n venture activity in relation to other assets owned by both ...