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| 8-K - FORM 8-K - BUNGELTD | ss83121_8k.htm |
EXHIBIT
99.1
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Investor
Contact:
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Mark
Haden
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Bunge
Limited
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914-684-3398
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Mark.Haden@Bunge.com
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Media
Contact:
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Susan
Burns
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Bunge
Limited
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914-684-3246
Susan.Burns@Bunge.com
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www.bunge.com
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Bunge
to Sell Brazilian Fertilizer Nutrients Assets to Vale for
$3.8
Billion in Cash
WHITE PLAINS, NY – January 27,
2010 – Bunge Limited (NYSE: BG) today announced that it has entered into
a definitive agreement with Vale S.A. (NYSE: VALE) under which Vale will acquire
Bunge’s fertilizer nutrients assets in Brazil, including its interest in
Fertilizantes Fosfatados S.A. (Fosfertil), for $3.8 billion in
cash. Net proceeds after taxes, transaction fees and expenses will be
approximately $3.5 billion.
Under the terms of
the agreement, Vale, a Brazil-based global mining company, will acquire Bunge’s
42.3% interest in Fosfertil, as well as Bunge’s wholly owned phosphate mines and
related production facilities in Brazil. The total annual phosphate
rock production capacity of Bunge’s nutrients assets and its share of Fosfertil
is approximately 3 million tons. Bunge will retain its retail
fertilizer operations in Brazil and will enter into a supply agreement with Vale
through 2012, with an option to extend it for one additional
year. Bunge will also retain its fertilizer operations in Argentina
and the United States, and its 50% stake in its joint venture with Office
Chérifien des Phosphates in Morocco.
Alberto Weisser,
Bunge’s Chairman and Chief Executive Officer stated, “This transaction is an
opportunity to immediately realize the value of these assets at an attractive
price. It allows us to redeploy capital to increase the scale of our
global agribusiness and food & ingredients businesses, and to further expand
into complementary value chains such as sugar. We see compelling
opportunities for growth by building on our global footprint and leveraging our
commercial, logistics and risk management capabilities across a larger product
portfolio. We believe this approach will deliver greater shareholder
value over the long-term. Additionally, Bunge intends to use a
portion of the proceeds to reduce outstanding debt.
Weisser continued,
“It’s an opportune time for Bunge to exit the upstream fertilizer
business. To continue to grow it would have required significant
capital that, in the face of uncertain international fertilizer price and local
currency environments, we believe is better allocated to other
opportunities. Additionally, large global mining companies are
entering the industry and diversifying their portfolios. We are
pleased that this business will join Vale, which shares with Bunge a long-term
commitment to Brazil.”
The transaction,
which is subject to customary closing conditions, including the receipt of
governmental approvals relating to certain mining concessions, is anticipated to
close in the second quarter of 2010.
Credit Suisse AG
acted as financial advisor and Souza Cescon Barrieu & Flesch Advogados and
Shearman & Sterling LLP acted as legal advisors in Brazil and the U.S.,
respectively, for Bunge in this transaction.
Conference
Call and Webcast Details
Bunge Limited's
management will host a conference call today at 10:00 a.m. EST to discuss the
transaction.
Additionally, a
slide presentation to accompany the discussion can be found in the “Investor
Information” section of our Web site, www.bunge.com, under
“Investor Presentations.”
To
listen to the conference call, please dial (800) 344-6698. If you are
located outside of the United States or Canada, dial (785)
830-7979. Please dial in five to 10 minutes before the scheduled
start time. When prompted, enter confirmation code 4425322. The
conference call will also be available live on the company's Web site at www.bunge.com.
To
access the webcast, click the “Investor Information” link on the Bunge homepage,
then select "Webcasts and News Alerts". Click on the link for the
"Bunge Limited Transaction Conference Call," and follow the prompts to join the
call. Please go to the Web site at least 15 minutes prior to the call
to register and to download and install any necessary audio
software.
For those who
cannot listen to the live broadcast, a replay of the call will be available
later in the day on January 27, 2010, and continuing through February 26,
2010. To listen to the replay, please dial (888) 203-1112 or, if
located outside of the United States or Canada, dial (719)
457-0820. When prompted, enter confirmation code
4425322. A rebroadcast of the conference call will also be available
on the company's Web site. To locate the rebroadcast, click on the
“Investor Information” link on the Bunge homepage, then select "Audio
Archives." Follow the prompts to access the replay.
About
Bunge Limited
Bunge Limited
(www.bunge.com,
NYSE: BG) is a leading global agribusiness and food company founded in 1818 and
headquartered in White Plains, New York. Bunge’s 25,000 employees in
over 30 countries enhance lives by improving the global agribusiness and food
production chain. The company supplies fertilizer to farmers;
originates, transports and processes oilseeds, grains and other agricultural
commodities; produces food products for commercial customers and consumers; and
supplies raw materials and services to the biofuels industry.
Cautionary
Statement Concerning Forward-Looking Statements
This press release
contains both historical and forward-looking statements. All
statements, other than statements of historical fact are, or may be deemed to
be, forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. These forward-looking statements are not
based on historical facts, but rather reflect our current expectations and
projections about our future results, performance, prospects and
opportunities. We have tried to identify these forward-looking
statements by using words including "may," "will," “should,” “could,” "expect,"
"anticipate," "believe," “plan,” "intend," "estimate," "continue" and similar
expressions. These forward-looking statements are subject to a number
of risks, uncertainties and other factors that could cause our actual results,
performance, prospects or opportunities to differ materially from those
expressed in, or implied by, these forward-looking statements. The
following important factors, among others, could affect our business and
financial performance: industry conditions, including fluctuations in supply,
demand and prices for agricultural commodities and other raw materials and
products used in our business, fluctuations in energy and freight costs and
competitive developments in our industries; the effects of weather conditions
and the outbreak of crop and animal disease on our business; global and regional
agricultural, economic, financial and commodities market, political, social and
health conditions; the outcome of pending regulatory and legal proceedings; our
ability to complete, integrate and benefit from acquisitions, dispositions,
joint ventures and strategic alliances, including the potential transactions
discussed in this press release; changes in government policies, laws and
regulations affecting our business, including agricultural and trade policies,
tax regulations and biofuels legislation; and other factors affecting our
business generally. The forward-looking statements included in this
release are made only as of the date of this release, and except as otherwise
required by federal securities law, we do not have any obligation to publicly
update or revise any forward-looking statements to reflect subsequent events or
circumstances.
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