Privatization CASEMG - Minas Gerais State silo and warehouse

CASEMG is a mixed-capital company created by State Law No. 1,643 of September 6, 1957, with the objective of storing and ensiling agribusiness products, transhipment of road and rail, preventive and curative phytosanitary treatment, cleaning and drying of goods . The Company has warehouses and silos in the main producing regions of Minas Gerais: Triângulo Mineiro, Alto Paranaíba, Noroeste Mineiro and Sul de Minas.

Main characteristics of CASEMG's assets:

• The Company has 18 storage units, of which only six had surpluses in 2016, possibly due to the low investment capacity in equipment modernization and infrastructure.
• Currently, CASEMG holds 4.3% of static storage capacity in the State of Minas Gerais and around 0.26% in the national scope.
• In the period from 2011 to 2016, the company had a cumulative loss of R $ 16.8 million.
• Net income for 2014 and 2015 was due to the sale of property, plant and equipment in the amount of R $ 3.2 and R $ 11.1 million, respectively.
• In view of the company's economic and financial situation, its low market share, its low investment capacity in equipment and infrastructure modernization, as well as its social function, it is recommended that CASEMG be qualified by the CPPI and become part of the Program of Investment Partnerships - PPI, so that the process of privatization of this company can be restarted with the consequent elaboration of studies that demonstrate the best alternative for the asset in question.