CASEMG – Companhia Warehouses and Silos of the State of Minas Gerais

closed

This is a proposal to resume the privatization process of the Companhia de Armazéns e Silos do Estado de Minas Gerais – CASEMG, which, through authorization contained in State Law No. 12,422, of December 27, 1996, and Federal Law No. 9,496, of On September 11, 1997, it was federalized as an entity of the Union's Indirect Public Administration. The Company was included in the National Privatization Program – PND through Decree No. 3,654, of November 7, 2000. Article 1, § 1, item III of law no. 13,334, of September 13, 2016, provides that: “the other measures of the National Privatization Program referred to in Law no. 9,491, of September 9, 1997” may integrate the Investment Partnership Program – PPI. CASEMG is a mixed economy company, created by State Law No. 1,643, of September 6, 1957, with the objective of storing and ensiling agribusiness products, carrying out road-rail transshipment, preventive and curative phytosanitary treatment, in addition to cleaning and drying goods . The Company has warehouses and silos in the main producing regions of Minas: Triângulo Mineiro, Alto Paranaíba, Noroeste Mineiro and Sul de Minas. Main characteristics of the CASEMG asset: ·        The Company has 18 storage units, of which only six showed surpluses in 2016, possibly due to the low investment capacity in modernizing equipment and infrastructure. ·        CASEMG currently holds 4.3% of static storage capacity in the State of Minas Gerais and around 0.26% nationally. ·        In the period from 2011 to 2016, the company presented an accumulated loss of R$16.8 million. ·        The net profit recorded in 2014 and 2015 was due to the sale of fixed assets in the amount of R$3.2 and R$11.1 million respectively.