The acquisition of Santa Vitória, a sugarcane derivatives plant, will boost the production of the company Jalles Machado
The company Jalles Machado announced this Thursday, 05/05, to the market, the acquisition of Usina Santa Vitória, of ethanol, sugar, cogeneration, etc., for approximately R$ 704,8 million. The purchase of a unit with solutions from the IPO was the promise of the company Jalles Machado since the IPO process (initial offering of shares). The Santa Vitória plant acquired by the company is located in Minas Gerais and has an installed capacity of 2,7 million tons. The industry's current planning is to process two million tons in the 2022/23 harvest. The cultivation of sugarcane covers approximately 37,6 hectares and 100% of the sugarcane used in the process is owned by the company. The energy produced by sugarcane is 113,6 kWh/ton and is sold at auction at R$ 438,2/Mwh.
Grinding capacity at Jalles Machado will increase with new acquisition
The company Jalles Machado points out that, with the acquisition of Power plant Santa Vitoria, the company's crushing capacity could increase by 46% going to 8,5 million tons of crushed sugarcane. In addition to extending capacity, the company reduced the risk of exposure to the sugar and ethanol sector with more solid cogeneration and increased geographic diversity, with the two plants that the company owns in Goiás.
According to the Broadcast website, the deal made by the company Jalles Machado has an earn-out mechanism, that is, if the crushing of the current harvest is greater than 1,9 million tons, Jalles Machado will pay half of the net gains arising from excessive crushing, however, if it falls below the intended level, Jalles Machado will receive half of the net losses caused by the lower volume of sugarcane crushing.
Discover Usina Santa Vitória
The Santa Vitória plant was inaugurated in 2015 and has a modern industrial space, with an area of 210 hectares and only 7 years of operation. It also has a crushing capacity of 2,7 million tons of sugarcane and produces more than 240 million liters of hydrous-type ethanol per season.
Initially, the construction of Usina Santa Vitória was conceived for the production of green plastics derived from ethanol. The initiative had Dow Chemical as its creator and also had the participation of the Japanese multinational Mitsui.
After its construction, the Santa Vitória plant suffered several losses from its conception until it was sold to the Geribá investor group. This sale generated tax losses totaling approximately R$1,6 billion. Additionally, the company holds approximately R$87,8 million in accumulated PIS and COFINS credits. In this course of recovery of Usina Santa Vitória, under the management of Geribá, the plant recorded its first year of profit only in 2021.
Purchase of Santa Vitória pork needs to be authorized by the board of directors
The completion of the acquisition of the Santa Vitória plant by Jalles Machado now depends on the implementation of conditions for transactions of this nature, in accordance with the rules established in the purchase and sale agreements. In addition, the acquisition still depends on the approval of CADE (Administrative Council for Economic Defense) and regulatory bodies.
To purchase Usina Santa Vitória, Jalles Machado was legally advised by Pinheiro Neto Advogados and financially by FG/A. According to the CEO of Jalles Machado, he thanks all the parties involved that provided the negotiation for the purchase of Usina Santa Vitória and also thanks the Geribá Investimentos Group for their trust.
The purchase of the Jalles Machado plant is part of an expansion plan for the company Jalles Machado, which began with its IPO in February 2021.
As soon as the negotiation of the Plant is approved, the shareholders of Jalles Machado will be able to use the right of withdrawal regarding all the company's shares over which they maintain uninterrupted authority from the current date until the period of 30 days counted from the date of publication of the minutes of the meeting that approved the purchase of the plant.
The dissenting shareholders will receive from Jalles Machado, if they use their right of withdrawal, the amount of R$ 4,51 per share issued by Jalles Machado, which was calculated based on the value of the company's equity on December 31 of the year 2021 and the number of shares that the capital of the Santa Vitória plant is currently divided into.
According to the website Jornalismo.com, the company Jalles Machado will keep the market informed about the procedures for its acquisition. The company will hold a conference call tomorrow, 05/05, at 15:XNUMX pm, with the market in general, where it will discuss more details about the transaction procedures.
