Why would U.S. Sugar sell to the state of Florida you ask?
Florida offered $1.75 billion, which comes to about $350 a share. That’s well above two previous offers of $293 a share that the company turned down, and much higher than the $180 to $204 its shares have traded for privately in recent times, reports the St. Pete Times, which also notes the company will get to operate for six years—and presumably earn money—before winding down operations.
And here’s the money quote: “But more than 100,000 acres of it could be turned back to farming—perhaps growing crops for use as fuel, said [Florida] Department of Environmental Protection Secretary Mike Sole.”
Hmmm. U.S. Sugar is happy, because they’re getting nearly twice the stock value. Florida government is happy, because they can go into the fuel business. And environmentalists are happy because they don’t have a clue what’s really going on. And the national news media bought it hook, line and crocodile.
Environmental advocates have worked long and hard fighting Big Sugar in FL and I doubt many are claiming total victory.
The dealings were apparently behind closed doors, but who knows. I’m hoping the state will lease the U.S. Sugar land to Florida Power & Light for a giant wind generator farm. FPL is the U.S. largest generator of wind power, also planning the world’s largest photovoltaic solar and solar thermal facility. Preserving the Everglades, cleaning up the environment, saving the region’s water sources, and generating power responsibly would be pretty wonderful.