Louis Dreyfus to buy controlling stake in Agrenco

SAO PAULO, June 26 (Reuters) - French commodities group Louis Dreyfus has signed a preliminary deal to buy a controlling stake in agribusiness company Agrenco (AGEN11.SA), which has most of its operations in Brazil.

The deal still depends on due diligence of Agrenco's business, the French group said in a statement late on Wednesday.

"Agrenco's activities, which include specialties, market niches, soybeans origination and processing, and logistics operations, could represent an important complement to Louis Dreyfus Commodities Group in these markets," the company said.

As part of the transaction, Louis Dreyfus will buy an undisclosed controlling stake in Agrenco Holding BV, the parent company of Agrenco, through a $33.5 million private placement.

Agrenco also plans to raise $65 million in a rights offering and another $35 million in a five-year loan from Louis Dreyfus that will be convertible into Agrenco shares.

The sale to Louis Dreyfus came days after three top Agrenco executives were detained by Brazil's Federal Police, charged with money laundering, among other crimes.

Agrenco is based in Bermuda but its soy origination operations are concentrated in Brazil.

Its business model involves "identifying a customer's needs to offer solutions" ensuring appropriate specifications, according to its Web site.

Louis Dreyfus is one of the largest trading houses in Brazil of soy, orange juice and sugar. It has also eight sugar and ethanol mills in operation.

The group had filed with Brazil's securities regulator to go public late in 2007 but then in January this year it canceled the plans, saying market conditions were not favorable at that moment. (Reporting by Inae Riveras; Editing by Christian Wiessner)