Cepri Recommends Casa Grande Legal Action

Tuesday, January 12, 1999

Peru's privatization committee Cepri has recommended that the Sales Commission initiate legal action against state-owned sugar producer Empresa Agroindustrial Casa Grande's board of directors for impeding the privatization process. Easton Capital-Azucagro (Azucagro) consortium made a US$29.4mn offer for 51% of the company on November 30, 1998 and submitted a US$470,000 deposit to carry out a due diligence study of Casa Grande's financial status over an 80-day period. Casa Grande has since refused to accede to the agreement. "Cepri is authorized to initiate legal action against the board for acting against the wishes of the state, but we would prefer that the Sales Commission take the initiative in this case," Cepri president Arturo Woodman said.

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