Source: Hemscott

London - Infinity Bio-Energy Ltd said it has bought interests in sugarcane ethanol facilities and biomass operations in a joint venture agreement with Disa Overseas LLC for about 75 mln usd, through its units Infinity Bio-Energy Brasil Participacoes SA and Infinity Disa Participacoes Ltda.

Under the transaction, Disa Overseas received 5.233 million Infinity shares and about 29 mln usd in an aggregate principal amount of Infinity's 10 pct senior unsecured convertible notes, due November 2011.

The sugarcane ethanol facilities will add two mills and about 3.3 million tons of annualized crushing capacity once fully built out, Infinity said, adding it will also develop a 30 megawatt biomass power co-generation and hold certain agricultural assets.

Infinity now owns 96.95 pct of Disa Destilaria Itaunas SA and 50.01 pct of Pecana Empreendimentos e Participacoes SA, the company that owns rights and equipment of brownfield project Montasa.

It also owns 50.01 pct of INFISA - Infinity Itaunas Agricola SA, a newly-formed company that owns the sugarcane supplied to Disa, and 50.01 pct of Ceisa Central Energica Itaunas SA, the company that will develop power co-generation in the Disa mill.

Infinity expects to invest 7.8 mln usd more in Disa Destilaria Itaunas to raise its installed crushing capacity to 1.8 million tons by 2009. Infinity added it will assume Disa Destilaria Itaunas's liabilities and contingencies of about 52.2 million usd.