India's Shree may bid for Brazil's Moema-report

SAO PAULO Aug 5 (Reuters) - Shree Renuka Sugars (SRES.BO), an Indian sugar refining group, might bid for a stake in Brazilian ethanol and sugar producer Grupo Moema as part of a plan to expand into Latin America's largest economy, Valor Economico newspaper reported Wednesday.

Shree hired Morgan Stanley to help it assess expansion opportunities in Brazil, Valor said, without saying how it obtained the information.

Moema, which has Brazilian sugar and ethanol tycoon Maurilio Biagi Filho as one of its main shareholders with a 35 percent stake, is looking for fresh capital to expand its business, according to the daily said.

Shree has about $100 million ready to spend in Brazilian acquisitions now that India's sugar output is falling, Valor said. The company is also negotiating with Cosan and other Brazilian producers long-term sugar purchasing deals, the daily said.

Moema is also being considered by Brazilian cane milling rivals Cosan (CZZ.N)(CSAN3.SA), Sao Martinho (SMTO3.SA) and Acucar Guarani ACGU3.SA, the newspaper said.

Cargill Inc [CARG.UL] and Bunge Ltd (BG.N) have also shown interest in buying a stake in Moema. Moema has asked too high a price for its assets, which may put hurdles on the sale, one unnamed source told Valor.

According to Valor, Shree declined to comment. (Reporting by Guillermo Parra-Bernal; Editing by John Picinich)