News

June 30, 2008

Clean Energy Brazil Looks Well Positioned To Benefit From Rising Sugar Prices

By Rue Swabey

Aim-traded Clean Energy Brazil owns sugar and ethanol assets in Brazil. It was founded as a closed-end investment company in 2006. Since then it has invested US$214 million in sugar assets in Brazil. In April it announced its new structure as an operational company, with the board taking direct responsibility for the management of its investments. The cost of terminating the investment advisory agreement between Clean Energy Brazil and Temple Capital Partners Limited - which received annual fees of two per cent of investment funds - was US$23 million payable by the issue of 11.8 million shares. That resulted in eight per cent dilution for shareholders.

Clean Energy Brazil, which is chaired by Antonio Monteiro de Castro, formerly chief operating officer of British American Tobacco, is invested in both established and greenfield businesses and is fully integrated. The company’s chief executive is Marcelo Junqueira, who was born and bred on a sugar estate. He also has long connections with the Brazilian ethanol industry as his grandfather and father were involved in pioneering the fuel during the 1970s oil shock. Today Clean Energy Brazil has...