Brazil Agriculture Group Mulls Multiple IPOs

Investors with stakes in Santelisa Vale, Brazil’s second largest sugar and ethanol company, and that company’s executives, are plotting up to three IPOs for some of their holdings, people close to Santelisa tell LatinFinance. First up is likely to be an offering from the company formed by a merger between Renk Zanini and Cermatec, two agricultural equipment makers held by Santelisa Vale. Bradesco BBI and JPMorgan are heard to have bagged that mandate. Another possible IPO is for Santelisa Vale itself, today a 14,000 employee firm whose crushing capacity is second only to Cosan in Brazil. Third is another sugar and ethanol startup called CNAA, which, in addition to Santelisa, which holds a 28% stake, counts as its investors Carlyle Riverstone, Goldman Sachs, Merrill Lynch, Global Foods and Discovery Capital. Timing and mandates for the last two offerings are still far from being decided.