Peru-based Maple Energy has received a $48 million rescue offer to shore up its ethanol fuel arm.
Engineering and infrastructure services company Graña y Montero and Geneva-based ethanol production company Alcogroup have offered a deal which would take equity holdings in the ethanol business.
The two investors have offered to pay $4 million to acquire 40 percent in The Maple Companies Limited (MCL), the subsidiary dedicated to ethanol production. Montero and Alcogroup will then commit to an equity investment of $13 million in MCL as part of a capital increase. A further $31 million equity investment from the two investors for Maple’s gas subsidiary would subsequently be transferred to the ethanol business.
Montero and Alcogroup would own 75.1 percent of the parent company MCL, which would own 100 percent of the ethanol business. The company suffered a 31 percent drop in share price at the end of September this year, when a cash deal for the business fell through according to the company’s broker Cenkos Securities.
The ethanol business reported lower-than-expected production during the first quarter of the year, continued from the end of 2013. The ethanol plant also closed for maintenance between February and April, according to a 10 June company update.