John Myers Jr., Business Reporter

Frome Sugar Factory in Westmoreland, the largest of the five factories Jamaica is hoping to sell to Infinity BioEnergy of Brazil. - File

The sole bidder for Jamaica's poorly performing sugar assets has been identified as Infinity BioEnergy out of Brazil. Government now says it still expects to wrap up talks to maintain its June timetable for divestment.

Infinity was one of eight companies prequalified to bid, but it was the only company to follow through with a tender by the February 18 close-off date.

"Discussions are ongoing with Infinity," said Agriculture Minister Christopher Tufton Monday.

"I can't comment on it because they are negotiating now with the Government."

The sugar-divestment programme is being handled by the Sugar Negotiating Team (SNT) a unit within the Development Bank of Jamaica.

Valuation of sugar assets

The SNT has done a valuation of the sugar assets but is keeping the figure close to its chest until the sale is finalised.

At last balance-sheet date, however, the company's fixed assets were carried at a value of $1.8 billion.

The deal being negotiated by the Aubyn Hill-led team is for the sale of five sugar factories and the leasing of cane lands.

The Sugar Company of Jamaica owns Bernard Lodge, Monymusk, Frome, Hampden and the St Thomas sugar factories.

Government is expected to absorb the estimated $16 billion of debt under which the SCJ is mired, in exchange for guarantees of capital injection into the factories by the new owner and the building out of new value-added markets.

Infinity BioEnergy is one of Brazil's most efficient producers of cane-based sugar and ethanol, employing modern operational procedures.

Its factories are said to produce sugar at US nine cents per pound, in line with world prices, or triple the performance of Jamaica whose unit costs are about US 25-27 cents.

john.myers@glenaerjm.com