Bloomberg News

Pomalca Gains as Investors Bet on State Withdrawal

April 03, 2012

Empresa Agroindustrial Pomalca SA (POMALCC1), Peru’s second-largest sugar producer, rose the most in two months as investors bet that the government will accelerate plans to transfer its remaining shares in the company.

Pomalca jumped 5.4 percent to 59 centimos at 1:17 p.m. in Lima trading, the steepest intraday advance since Feb. 3. The stock has gained 23 percent this year.

The government plans to transfer its 33 percent stake in Pomalca, as well as shares in two other sugar mills, to workers by the end of June in exchange for back pay and other compensation owned to them, Jose Leon, president of the congressional agricultural committee, said in a March 6 interview. The companies will then owe the state.

“Investors are counting on the state offloading its shares soon,” said Leoncio Altamirano, a trader at Lima-based Juan Magot y Asociados SAB. “This will help the sugar industry to reorganize their finances.”

To contact the reporter on this story: Alex Emery in Lima at aemery1@bloomberg.net.

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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