(Bloomberg) – Controlling shareholders of the Brazilian Sugar and Ethanol Raízen () Producer are in negotiations to sell a participation to Mitsubishi Corp. As part of a plan to raise capital, according to people familiar with the subject heard by Bloomberg.
The conversations are at an early stage, and Mitsubishi is still evaluating if he will make a proposal for Raízen’s actions, people said, who asked not to be identified because negotiations are private. Raízen is a joint venture between Brazilian Holding Cosan () and London -based oil producer Shell. Cosan aims at a capital contribution of R $ 10 billion (US $ 1.8 billion) in Raízen to reduce its growing debt, people said.
Banco Itaú BBA is working with Cosan, Lazard Inc. is working with Shell and Citigroup Inc. is working with Raízen.
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Cosan “is evaluating potential investors for a Raízen capitalization transaction together with Shell,” the company said in a document on Tuesday, noting that there are no binding approvals or events at the moment.
Shell, Raízen and Mitsubishi declined to comment, as did Itaú and Citigroup. Lazard did not immediately respond to a comment.
Raízen Safra 2025-2026, with debt increasing in relation to profit as the company has taken loans to replace contracts with suppliers. Net debt reached 4.5 times the profit before interest, taxes, depreciation and amortization, according to XP.
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Raízen shares rose up to 3.2% in Sao Paulo with the news before erasing the gains. The company’s shares still accumulate a 43% drop this year.
Director Finance Director Rafael Bergman said in a teleconference on August 14 that Raízen is in active negotiations with its controlling shareholders for a capital injection.
Its co-controller Cosan, controlled by billionaire Rubens Ometto, is in divestment mode, with a plan to sell assets and slow down expansion, as the highest costs of loans in Brazil affect their finances.
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Cosan does not plan to inject equity in Raízen, but “likes” the alternative to bring a strategic partner, CEO Marcelo Martins said in a teleconference on August 15.
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