UPDATE 2-Tereos says to delist unit from Sao Paulo stock exchange

viernes 4 de diciembre de 2015 14:23 GYT

(Adds share price performance, information from BTG Pactual research note)

PARIS Dec 4 (Reuters) - French sugar group Tereos said on Friday it plans to make a tender offer for the remaining shares of its Tereos Internacional unit, with a view to delisting it from the Sao Paulo Stock Exchange during the second quarter of 2016.

The unit's shares soared 130 percent on the Sao Paulo exchange to 51.90 reais. The offer of 65 reais per share is subject to review by an independent appraiser.

"The offer reflects Tereos' willingness to simplify the group's legal structure," Tereos said in a statement.

"In the context of an illiquid market, the aforementioned operation will offer to the minority shareholders an immediate liquidity event should they wish to divest their shares."

Tereos owns 69.82 percent of Tereos Internacional, which was listed in 2010 and encompasses the French cooperative's sugarcane, cereals and starch processing operations, including its majority stake in Guarani, a joint venture with Brazil's state-owned oil major Petrobras.

Sao Paulo-based investment bank BTG Pactual recommended in a research note that investors take part in the tender, even though the sugar and ethanol sector appears ripe for a turnaround after years of low prices.

The bank said Tereos' proposal offers a return much superior to those from other listed sugar and ethanol companies in Brazil.

Tereos Internacional has faced a severe downturn in Brazil's sugar and ethanol industry, as sugar prices have fallen to multi-year lows and the government has controlled fuel prices.   Continuación...