Cosan to Launch Two Share Offerings, Raising Up to $1.6 Billion to reduce Debt
SÃO PAULO - Brazilian conglomerate Cosan announced sunday it will proceed with two public share offerings, potentially issuing up to 2 billion new common shares, backed by anchor investors including BTG Pactual and Perfin. The move aims to significantly reduce the company’s financial leverage and bolster its financial adaptability.
The first offering will distribute a base of 1.45 billion shares, with a potential increase of 25%. anchor investors have fully committed to subscribing to the base amount, representing an investment of 7.25 billion reais (approximately $1.36 billion USD) at a price of 5.00 reais per share.
A second offering will follow, encompassing up to 550 million shares, excluding any shares already purchased in the first offering. Shares in this tranche will be priced the same as the first and will not be subject to a lock-up period.
Cosan stated that the total number of newly issued shares across both offerings will not exceed 2 billion, with potential adjustments to the second offering to ensure this cap is met.
All proceeds from both share offerings will be dedicated solely to renegotiating and repaying Cosan’s existing financial debts.
($1 = 5.3280 reais)
(Reporting by Isabel Teles)
