Sugar group Tereos drops Paris share sale plan

martes 4 de marzo de 2014 13:49 GYT

* CEO says Sao Paulo listing still lacks liquidity

* Says group has no need for immediate financing

By Sybille de La Hamaide

PARIS, March 4 (Reuters) - Tereos, the world's fourth-largest sugar maker, has dropped plans to sell shares in its cane and grains business in Paris so it can concentrate on improving trading activity in its Brazil-listed shares, its chief executive said on Tuesday.

The French farmers' cooperative announced in 2010 that it would spin off the businesses in a branch called Tereos Internacional via offerings on both the Sao Paulo and Paris stock markets.

The Sao Paulo move took place later that year, and the company raised a further 148 million euros ($184 million) in 2012 to finance new projects in Brazil, China and France. Some 30.4 percent of the company's stock is now in free float on the Sao Paulo bourse, valuing the company at about $734 million.

But the company's stock price has halved in value since late 2010, and Tereos has repeatedly postponed a launch in Paris, saying market conditions were not favourable.

The Paris stock market and bourses elsewhere have been hitting their highest level since 2008 this year, Tereos CEO Alexis Duval, who took over at the head of the business from his father in October 2012, said the experience of those past four years left him unconvinced of the merits of a second listing.

"Today we no longer look at this project of double-listing because we already have a liquidity problem that we would not want to worsen," Duval told Reuters in an interview.   Continuación...