Cosan (CSAN3) plummets over 20% after announcing a $10 billion offer

Cosan (CSAN3) shares are experiencing a sharp decline this Monday (22) after Rubens Ometto’s company announced a deal with BTG Pactual and Perfin to anchor a $10 billion capital increase, expected to reduce the holding’s corporate debt by 57%. At 10:25 am, the company’s shares were down 20.53% at $5.96. BTG Pactual Holding, whose partners include billionaire Andre Esteves, will invest $4.5 billion, while Perfin Infra Fund will contribute another $2 billion, as disclosed by Cosan. The agreement also includes a $750 million investment from Cosan’s founder’s family office, Rubens Ometto. Additionally, there will be a subsequent offering of up to $2.75 billion. The company is currently facing high interest rates in Brazil, lower profits in its sugar and ethanol business, as well as dealing with criminality in Brazil’s fuel distribution sector. Since acquiring a stake in Vale (VALE3) in 2022, Cosan has been struggling with debts. (updating)