ETH studies share swap to assume parent's stake in Angola's Biocom - report

Dec 19, 2011 - Brazilian biofuels maker ETH Bionergia studies a possible share swap with its parent company, local builder Odebrecht, in order to assume the 40% stake the latter holds in Angola's sugar, ethanol and energy plant Biocom.
According to a report of Brazil's business daily Valor Economico from Friday, ETH's president Jose Carlos Grubisich said that the value of the operation is still under discussion.
The proposal will be presented to the management board of ETH in early 2012.
Biocom is a joint venture formed by Odebrecht, with 40%, Angolan private group Damer, with another 40%, and Angola's state-owned oil company Sonangol, with 20%.
The plant is being built in the municipality of Cacuso, Malanje province, and is planned to be launched in 2013.
The analysed share swap will allow ETH to become the operator and manager of the project, Grubisich told Valor.
The facility will have a sugar cane crushing capacity of 2.5 million tonnes per year and will primarily focus on meeting the Angolan market's sugar demand.
The unit is also designed to produce up to 30 million litres (7.9m gallons) of anhydrous ethanol and 200,000 MWh.

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