Brazil's Vanguarda plans IPO to finance soy output

Vanguarda do Brasil SA, Brazil's second-largest soy producer, plans to sell shares in an initial public offering and use the proceeds to boost production of the oilseed and livestock.

"Selling shares is the natural step in our story," said CEO Leonardo Slhessarenko, without stating when the share sale may happen.

Vanguarda's soy, corn and cotton crops cover 219,000 hectares (541,160 acres). The company plans to increase soy planting by 33% in five years to 200,000 hectares. The group, which reported net sales of BRL800 million (US$447.4 million) in 2009, also raised 150,000 hogs and 30,000 cattle last year.

The company is talking with banks to refinance US$150 million of short-term debt and extend maturities to about five years from one year now, Slhessarenko said.

Banco BTG Pactual SA paid US$68 million for a 10% stake in the company in 2007 and later reduced its holdings to about 9%.

Grupo Bom Futuro, based in Rondonopolis, Brazil, is the country's largest soy producer. Brazil is the world's largest soy producer after the US.