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

SAO PAULO, May 15 (Reuters) - ​Brazilian ⁠conglomerate Cosan could sell ​its stake in sugar and ethanol producer Raizen ​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 ‌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.

Shell