Brazil's Cosan mulls selling Raizen stake after restructuring dilutes holding

Cosan

15/05/2026 14:36

SAO PAULO, May 15 (Reuters) - Brazilian conglomerate Cosan CSAN3.SA could sell its stake in sugar and ethanol producer  Raizen RAIZ4.SA after a financial restructuring of the indebted producer significantly dilutes its holding, CEO Marcelo Martins said on Friday.

Speaking on an earnings call, Martins said Cosan will not join partner Shell SHEL.L in a capital injection into Raizen, one of Brazil’s largest fuel distributors. The company is also in talks with creditors to convert debt into equity.

“Given the size of the potential conversion, it will result in substantial dilution” of Cosan’s stake, Martins said, adding key terms such as the conversion price are still under discussion.

He said Raizen will no longer be a core investment for Cosan, which is expected to hold a minority stake and may seek liquidity by selling shares at some point, though no decision has been made on timing or size.

 (Reporting by Roberto Samora; Writing by Isabel Teles)

 ((isabel.teles@thomsonreuters.com; +55 11 91033 3602))