SÃO PAULO (Reuters) -Cosan () reported this Thursday that it sold 173,073,795 shares issued by Vale (vale3), representing a stake in the mining company’s voting share capital of approximately 4.05%.
Considering the price of 52.67 reais per share, as quoted at 11:50 am on B3, the deal would have been around 9 billion reais. Cosan did not disclose the value
The chairman of the Board of Directors of Cosan, Rubens Ometto Silveira de Melo, stated in a statement that he “always” believed in Brazil and therefore invests in the country, but issues linked to interest rates were considered.
“Vale is an extraordinary asset and I have a lot of confidence in the new management. However, the current level of interest rates forces us to reduce Cosan’s leverage,” said Ometto.
“In my career as an entrepreneur, I became more pragmatic. I have been through a lot and I have learned that the focus must be on financial discipline so that we can continue to grow,” he added.
In April last year, Cosan had already sold 33.525 million shares issued by Vale, representing a stake in the mining company’s voting share capital of approximately 0.78%, now holding 4.14% of the voting capital at that time.
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In October 2022, the value of the stake acquired by Cosan in Vale, financed through long-term credit lines, was valued at more than 20 billion reais.
“It was a pragmatic and strictly financial decision. Considering the current interest rate in Brazil, it was difficult to bet on a significant appreciation of the stock market”, stated Cosan CEO, Marcelo Martins.
“Vale is a very high quality asset with a lot of liquidity, and Cosan is on a clear trajectory of reducing leverage,” he added.
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At the beginning of October 2022, when Cosan acquired Vale shares, the mining company’s share was worth more than 60 reais, well below current levels.
