Indofood Agri Resources to expand to Brazil with $71.7m acquisition

It plans to acquire 50% of CMAA.

In a disclosure to the Singapore Exchange, Indofood Agri Resources said that its proposed acquisition of 50% of Companhia Mineira de Açúcar e Álcool
Participações (CMAA), a local sugar and ethanol producer in Brazil, will cost around $71.7 million and will be funded by internal cash.

Indofood Agri Resources said the acquisition is part of its plan to expand its geographical presence into the sugar, ethanol and co-generation
industry in Brazil. It also believes the superior technical know-how and best practices from Brazil can be transferred back to IndoAgri’s Indonesia sugar operations. It also expects the acquisition to be an earnings accretive investment as early as 2014/15.

Indofood Agri Resources further noted that JF Citrus will remain as a strategic partner and increase their stake to 50% following the completion of the deal.