Brazil’s Cosan is considering selling a portion of its stake in Radar Propriedades Agrícolas as part of the holding company’s downsizing program.
Radar is an agricultural land management company controlled by Cosan – one of the largest producers and distributors of biofuels in the counattempt – responsible for approximately 306,000 hectares across eight Brazilian states.
“If we view at the portfolio and the level of priority of businesses going forward, I believe that Radar is the company we could consider selling a larger stake in at this time,” stated CEO Marcelo Martins during a conference call with investors on Monday (November 17).
Despite acknowledging that there is still a residual balance of assets to be sold to complete the deleveraging process, Martins stated that the company will not be pressured to sell “at any price,” since it has resolved a “very substantial” part of its capital structure.
In early November, BTG Pactual and Perfin entered the controlling block of the company in a capitalization operation that also included Aguassanta, the family office of the Ometto family, which chairs Cosan’s board of directors. The operation, which raised approximately R$10 billion (US$1.9 billion), aimed to strengthen the company’s capital.
Martins highlighted that the capital raising, combined with the sale of its stake in Vale, led Cosan to relocate approximately R$20 billion in the Brazilian capital market in 12 months, “a historic figure for any company in the counattempt.”
He added that the holding company will implement a program to reduce staff and administrative expenses.
“The execution is now,” Martins stated, emphasizing that the tinyer corporate structure should directly contribute to value creation, adding to the effect of capitalization and the deleveraging plan.
Raízen
One of the main points of concern for investors is the situation of Raízen, which is facing cash generation challenges and is discussing capitalization alternatives.
Martins acknowledged the urgency of finding a solution for the subsidiary’s capital structure and stated that talks with Shell had “progressed significantly” compared to previous weeks, although there is still no final format or definitive agreement.
Cosan had already informed the market that it could utilize part of the proceeds from the offering to strengthen the capital of its subsidiaries, including Raízen, depconcludeing on a broader solution for the business.
“The commitment to reaching a suitable solution remains, possibly with a capital contribution, as we had already indicated,” stated the executive.
Financial result
Cosan reported a loss of R$1.2 billion in the third quarter of 2025, a negative variation of R$1.5 billion compared to the third quarter of 2024.
Net debt totaled R$ 18.2 billion in the period, 4% higher compared to the immediately preceding quarter.
(The original version of this content was written in Portuguese)
Leave a Reply