Brazil's Raizen says shareholders vote to back restructuring plan (updated)
UPDATE 2-Brazil's Raizen says shareholders vote to back restructuring plan Adds confirmation from Raizen in paragraph 1, additional filing information in paragraphs 4-7
By Luciana Magalhaes, Oliver Griffin and Andre Romani
SAO PAULO, Oct 30 (Reuters) - Shareholders of Brazil's Raizen RAIZ4.SA voted on Friday to approve the implementation of the global sugar and ethanol producer's out-of-court restructuring plan, the company said in a filing.
The package includes a planned capital increase between 3.5 billion and 39.8 billion reais ($642.2 million to $7.3 billion).
The filing confirmed earlier reporting by Reuters, which learned of the approval from three people familiar with the matter.
Raizen's board of directors is scheduled to meet on November 6 to consider approval of the capital increase, the filing said.
As part of the restructuring, the company will split in two, resulting in the creation of Raizen Energia — which will concentrate on producing sugar, ethanol and bioenergy products — while the rump of Raizen will concentrate on fuel distribution operations.
"The company will begin the preparatory work for a competitive process to evaluate a potential investment in the fuel distribution business," the filing said, adding that options could include a secondary public offering.
The shareholders have also elected board members for both Raizen Energia and Raizen, the company said in another filing.
Raizen's restructuring plan, totaling some 65 billion reais in debt, is the largest in Brazilian history and followed a number of risky bets, poor harvests and low commodity prices.
The company was initially created as a joint venture between Brazilian conglomerate Cosan CSAN3.SA and London-listed oil major Shell SHEL.L.
($1 = 5.45 Brazilian reais)
(Reporting by Luciana Magalhaes, Oliver Griffin and Andre Romani; Editing by Fernando Cardoso and Will Dunham)
((oliver.griffin@thomsonreuters.com; +55 11 95361-2170))