Argentina’s second- biggest soybean producer Los Grobo, plans to transfer some assets to a new company and sell shares of the business in an initial public offering in Brazil.
The company will be called LG Agronegocios & Participacoes SA, according to a regulatory filing Wednesday. Los Grobo, which produces soybeans, corn, wheat and sugar in Brazil, Argentina, Uruguay and Paraguay, didn’t provide details on the timing or value of the offering.
Los Grobo follows other agricultural companies in Brazil and Argentina seeking to tap stock markets. Adecoagro SA, a farm company with headquarters in Argentina and operations in Brazil, held its IPO in New York in January, and closely held Saladillo, Argentina-based El Tejar, the world’s biggest grains producer, said it may hold an offering as early as 2012.
Earlier this month, BrasilAgro - Cia. Brasileira de Propriedades Agricolas cancelled its plans to sell additional shares after it said market conditions “deteriorated”.
Argentina’s Grobocopatel family and Brazil’s Grupo Vinci Partners, an investment company set up by former Banco Pactual SA partner Gilberto Sayao, are among shareholders in LG Agronegocios.
Credit Suisse Grupo AG, Banco Itau BBA SA, Banco BTG Pactual SA and Banco Bradesco BBI SA will handle the offering.