Brazilian billionaire Rubens Ometto will delist either Cosan SA Industria & Comercio or its parent Cosan Ltd. (CZZ) to “simplify” the capital structure of the world’s largest sugarcane processor.
“The plan is to have a single company listed,” Ometto, 62, told reporters in Sao Paulo yesterday. “We are exhaustively studying the better way to do that.”
The parent company based in Hamilton, Bermuda, was created in 2007, allowing Ometto to boost Cosan’s capital without diluting it. Ometto transferred his controlling stake in Cosan to the new holding company and created a class of shares with 10 times more voting power than the existing class. In the same year, Cosan Ltd. raised $1.1 billion in an initial public offering in the U.S. to fund a unit expansion.
“I want to simplify the capital structure,” he said. “The decision has been made. Now it’s a matter of how.” He plans to announce a detailed plan next year.
Cosan Ltd. trades in New York, Cosan SA in Sao Paulo. Ometto indirectly holds 39.3 percent in Cosan Ltd., which controls Cosan SA with a 59.3 percent stake.
Cosan rose 0.5 percent at 1:35 p.m. in Sao Paulo. The stock has gained 48 percent this year, while its parent has climbed 52 percent in New York. The Bovespa stock index has advanced 0.4 percent in the same period.
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