Cosan Considers Selling Entire Raízen Stake and Dissolving Holding Company

Cosan President Marcelo Martins announced that the company is evaluating the sale of its entire remaining stake in Raízen following a financial restructuring process that has reduced Cosan to a minority shareholder. The restructuring involves converting Raízen's debt into equity, leading to significant dilution of Cosan's holdings. Consequently, Cosan will not participate in a capital contribution alongside its partner, Shell, and intends to terminate their long-standing shareholders' agreement. Martins indicated that while no concrete decision on the timing or volume of the sale has been made, Cosan seeks liquidity and views Raízen as no longer a core investment. Additionally, Martins revealed plans to dissolve the Cosan holding company structure within five years, potentially beginning in 2027, to reduce leverage. Shareholders would receive direct shares in subsidiary companies such as Rumo and Compass Gás e Energy. This strategic shift aims to streamline operations and address debt levels amidst the ongoing financial challenges faced by the sugar and ethanol producer Raízen.