Tate & Lyle PLC
Tate & Lyle agrees sale of Mexican sugar business
Tate & Lyle PLC ('Tate & Lyle') announces that its Mexican subsidiary ('Tate &
Lyle Mexico') has signed an agreement for the sale of its 49% shareholding in
Grupo Industrial Azucarero de Occidente, S.A. de C.V. ('Occidente') to E D & F
Man Holdings Limited ('E D & F Man'). Occidente operates three sugar mills in
Mexico. E D & F Man's right to acquire Tate & Lyle Mexico's 49% interest in
Occidente is subject to Occidente's majority shareholder's option to acquire 1%
of those shares. If such option is exercised then E D & F Man would acquire a
48% interest in Occidente.
On completion, Tate & Lyle will receive a consideration of US$93 million (£46
million). The consideration will be used to reduce Group debt.
The sale of Occidente is conditional upon clearance under the Mexican Federal
Economic Competition Law. Completion is expected by early December.
At 31 March 2007 Tate & Lyle's share of the net operating assets of Occidente
was £42 million. Tate & Lyle's share of the operating profit for the year to 31
March 2007 was £6 million.
Iain Ferguson, Chief Executive, Tate & Lyle said, 'Last week, we announced the
completion of the sale of our European wheat starch plants, eliminating our
direct exposure to the European wheat market which has been particularly
volatile in recent months. Today, we are announcing the sale of our interest in
Occidente, our Mexican cane sugar business. Both these transactions represent
important steps in our strategy of reshaping our business to reduce the impact
of our exposure to volatile raw material and commodity markets as we build a
stronger value added business. I would like to take this opportunity to thank
the employees of Occidente for their commitment and hard work over the years,
and our former partners in Mexico for their constant support, and wish them all
every future success.'
Nicholas, Group Finance Director
Tel: +44(0)20 7626 6525
Ferne Hudson, Head of Media and Public Relations
Tel: +44(0)20 7626 6525 or Mobile: +44 (0)7713 067433
E D & F Man Holdings Limited
Simon Mitchell, Director, Man Sugar Limited
Tel: +44(0)20 7089 8000
About Tate & Lyle:
Tate & Lyle is a world leading manufacturer of renewable food and industrial
ingredients. It uses innovative technology to transform corn and sugar into
value-added ingredients for customers in the food, beverage, pharmaceutical,
cosmetic, paper, packaging and building industries. The Company is a leader in
cereal sweeteners and starches, sugar refining, value added food and industrial
ingredients, and citric acid. Tate & Lyle is the world number-one in industrial
starches and is the sole manufacturer of SPLENDA(R) Sucralose.
Headquartered in London, Tate & Lyle is listed on the London Stock Exchange
under the symbol TATE.L. In the US its ADRs trade under TATYY. The Company
operates more than 50 production facilities throughout Europe, the Americas and
South East Asia. In the year to 31 March 2007, it employed 6,900 people in its
subsidiaries with a further 2,300 employed in joint ventures. Sales in the year
to 31 March 2007 totalled £4.0 billion. Additional information can be found on
http://www.tateandlyle.com.
SPLENDA(R) is a trademark of McNeil Nutritionals, LLC
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