Shree Renuka Sugars gains as Wilmar eyes stake

Reports suggest that Singapore-based Wilmar is eyeing majority stake

Shares of Shree Renuka Sugars were up nearly 3% at Rs 23.25 on reports that Wilmar International, a Singapore-based agribusiness group, has initiated talks to buy a stake in the sugar refiner.

Sources familiar with the matter say Wilmar is keen on buying a majority stake in the Indian company, which is looking at various options to ease its Rs 8,400 crore debt burden.

If Wilmar, one of the world’s leading producers of palm oil, buys a majority stake in Shree Renuka, it will pave the way for its entry into important sugar markets, such as Brazil and India. The value Wilmar might pay for a stake in Shree Renuka could not be ascertained.

Over 6.2 million shares were traded so far on both the stock exchanges.