Wilmar International Limited (SGX:F34) is close to finalising an agreement to buy up to 25% stake in Shree Renuka Sugars Limited (BSE:532670), said three persons with direct knowledge of the transaction. The Murkumbi family-promoted company will issue fresh shares to Wilmar,and the deal is likely to be finalised at a price between INR 30 and INR33 per share, these people said. Renuka Sugars' top executives, including Vice Chairman and Managing Director Narendra Murkumbi recently met the top management of Wilmar in Singapore to iron out the last-minute glitches, said one of the persons quoted above."Both parties will shake hands very soon.

The deal is being finalized in such a way that the Murkumbi family will retain control of the company. It is more or less like the original Diageo-UB group deal," the person added. According to Economic Times, Shree Renuka Sugars and Wilmar International did not respond to specific questions on the subject.

Fresh issue of shares equivalent to 25% of Renuka's capital at INR 33 per share values the company at INR 29 billion. The company's shares fell around 3.95% to close at INR 20.60 a share on January 10, 2014 at the Bombay Stock Exchange. Post the transaction, the Murkumbi family's stake is expected to come down by 8% from 38.36%.

The deal will help Shree Renuka cut debt of INR 84.77 billion arising out of expensive acquisitions in Brazil in 2010.