Südzucker ups stakes in Tirlemontoise

Related tags Finance

Europe's largest sugar producer, Südzucker, has closed a five-year
convertible bond of €250 million, the proceeds from which will be
used to lift its stake in two subsidiaries.

The German group said this week that it intends to use the funds to increase its stake in Belgian subsidiary Raffinerie Tirlemontoise by purchasing the remaining 15 per cent. Indirectly, the move will also lift its stake in subsidiary Saint-Louis Sucre to 100 per cent.

"The offering allows Südzucker to secure attractive long-term financing and to benefit from the particularly attractive market conditions due to the combination of low interest rates and strong demand from convertible investors,"​ said the company in a statement this week.

According to the German sugar giant, the move will lead to a sustainable increase in the group's net income and improve cash flow by approximately €19 million per annum as well as lifting earnings per share by around 10 cents.

The convertible bond was issued through Südzucker International Finance, a Dutch subsidiary of Südzucker, and will be guaranteed by Südzucker. Deutsche Bank is the Bookrunner on the convertible bond offering.

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