China’s largest dam builder, Sinohydro Group, cut the size of its initial public offering 14% because of a drop in demand for the new shares.
In an unusual move, Brazil-based meat packing conglomerate JBS has put off a formal U.S. IPO so many times that Brasilia is fining the company $300 million for stalling.
Cosan recently hosted its first New York investor day to give Wall Street a closer look at its top management from all its business segments: sugar, ethanol production, fuel distribution.
Key takeaways: Sugar prices should remain strong through 2011 and beyond, while M&A will remain a focus — although no acquisitions are expected in the long term, the company’s entrenched focus on sugar will probably expand into other food categories where it can apply its existing brand.
This Brazilian ethanol producer has drastically transformed its business — and its balance sheet — over the last two years, and is now a global investor’s primary choice when looking for exposure to either Brazil or the ethanol/sugar ecosystem.
Basically, BofAML thinks that as CZZ streamlines its operation now, it will provide a base for future organic growth and M&A. The fuel distribution venture with RYDAF will unlock synergies, while corporate governance is improving.
This is generally bullish for the company over the long term. CZZ may end up a global powerhouse brand — and as sugar markets heat up around the world, that could mean a great deal in the long term.