A day after disclosing the outlines of its proposed out-of-court restructuring plan, Raízen announced the sale of its assets in Argentina , a measure considered necessary to help alleviate the company's difficult financial situation.
The company announced on the morning of Thursday, June 4th, that it had agreed to sell its downstream operations (refining and marketing of fuels) in Argentina to Latam Downstream Holdings and Silver Projects I, companies controlled by Mercuria Energy Group, a Swiss multinational commodities trading company, for US$1.42 billion.
The agreement stipulates payment in cash on the closing date of the transaction, with the buyer also assuming the debt of Raízen's Argentine operations.
In the official announcement of the sale, Raízen stated that the proceeds will be used to manage its capital structure.
"The transaction is aligned with the company's strategy of optimizing its asset portfolio, simplifying its operational structure, and implementing disciplined capital allocation, focusing on priority markets and geographies," the company said.
The sale of assets in Argentina was seen as an important step within Raízen's strategy to reduce its financial leverage, which, in the third quarter of the 2025/26 crop year, ending in December, reached 5.3 times.
The amount raised exceeded expectations. In the earnings conference call for the period, in February, Raízen's CEO, Nelson Gomes, stated that the operation could raise almost US$1 billion.
Since last year, Raízen has been divesting a series of assets, after embarking on a strong investment cycle that began after its IPO in 2021, when it raised almost R$ 7 billion.
Calculations by Levante Investimentos indicate that the company has invested a total of R$ 46.8 billion since its IPO, with a significant portion of the funds allocated to new plants for the production of second-generation ethanol (E2G).
In its third-quarter earnings report, Raízen stated that the divestments announced up to that point represented approximately R$ 5 billion in cash, in addition to the exit from certain operations that resulted in an improved asset portfolio.
But sales and operational restructuring alone would not be enough to solve the company's problems. Gomes highlighted that Raízen also needed an injection of resources to reduce leverage to something between 2.0 and 2.5 times, a range considered ideal "for the numbers to add up".
After much back and forth, including disagreements between partners and creditors, Raízen presented, on Wednesday, June 3rd, a version of the out-of-court restructuring plan to restructure approximately R$ 65 billion in debt, which will be analyzed by creditors.
In general terms, the proposal foresees that Shell will contribute R$ 3.5 billion, equivalent to the value of converting 45% of its debt, while Aguassanta Investimentos, owned by the family of Rubens Ometto, may contribute another R$ 500 million.
The plan foresees the conversion of 45% of the total restructured debt into shares at a price of R$ 0.25 per share, and the remaining 55% into new debt instruments, allocated between Raízen Combustíveis and Raízen Energia.
Raízen also developed two payment alternatives. In one of them, the company proposes an 80% discount on the value of the credit subject to restructuring and payment in a single installment, due on March 31, 2047.
Alternatively, payment will be made in cash, equivalent to the lower of 75% of the respective credits or R$ 9,750.00, subject to an aggregate limit of R$ 150 million.
The plan also includes changes to governance. The board of directors will consist of seven members, four appointed by the creditors supporting the plan (including the chairman) and three by Shell, without the participation of Cosan .
Raízen's shares closed yesterday's trading session up 2.63%, at R$ 0.39. Year-to-date, the shares are down 51.2%, bringing the market value to R$ 527.8 million.
