Wilmar

Wilmar: Nomura note of speculations by Wilmar on a stake purchase in Shree Renuka. As per a few news articles in India, Wilmar may be talking to Shree Renuka Sugars (SHRS IN) to buy a stake in the company. http://www.forbes.com/sites/naazneenkarmali/2013/12/03/wilmar-to-buymajority-stake-in-indian-sugar-firm-shree-renuka/ http://www.moneycontrol.com/news/cnbc-tv18-comments/shree-renuka-sugarsmay-sell-stake-to-singapore39s-wilmar_1001376.html The stake purchase may trigger an open offer which implies >25% stake. Shree Renuka Sugars (SRS) has a market cap of ~US$200mn, with annual crushing capacity of 22mn MT (13mn MT in Brazil); However, it is loss making, and is trading at EV/EBITDA of 6x CY14F (sector average ~5.5x).