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Cosan Announces Capitalization of R$ 10 Billion with BTG Pactual; Shares Fall 18% and Market Reacts with Billion-Dollar Devaluation
The shares of Cosan registered a sharp decline of 18.13% on Monday (09/22/2025), trading at R$ 6.14, after the company confirmed a capitalization of up to R$ 10 billion.
The announcement, made in conjunction with the banks BTG Pactual and Perfin, generated an immediate impact on the stock market, reflecting investors’ concerns about share dilution.
The aim of the operation is to renegotiate debts and recover the financial flexibility of the conglomerate.
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According to the company, the funds will not be allocated to Raízen, its joint venture with Shell, which also contributed to the negative pressure on the shares.
Impact on the Stock Market and Effect on Raízen
In the same trading session, Raízen fell 7.75%, priced at R$ 1.19, reinforcing the cautious sentiment among investors.
At the day’s low, Cosan traded at R$ 5.63, which represented a loss of nearly R$ 3.5 billion in market value compared to the previous Friday.
Despite the drop, company executives highlighted that the entry of new partners should provide time and more favorable conditions for future divestments.
Cosan Explains Reasons for the Capitalization
During a conference call, President Marcelo Martins and CFO Rodrigo Araujo stated that the decision came after a “long competitive process” in search of alternatives to reduce leverage.
Currently, Cosan’s net debt amounts to R$ 17.5 billion.
According to the executives, capitalization is not the only planned measure. The company intends to continue with asset sales, but in a more strategic manner, taking advantage of better market conditions.
“Now we have breathing room, we have time, calm, together with our partners, to define the divestment strategy at the right time to achieve a debt level close to or zero, which is our ultimate goal in the coming years,” said Martins.
Strengthened Governance and Agreement with BTG Pactual
The agreement signed with BTG Pactual and Perfin includes the execution of two primary public offerings of shares, potentially reaching up to R$ 10 billion.
The first one contemplates the issuance of 1.45 billion common shares, with a possibility of a 25% increase. The price set was R$ 5 per share, ensuring a minimum amount of R$ 7.25 billion.
The second offering may comprise up to 550 million shares, without a lock-up period for resale. The total limit will be 2 billion new shares.
In addition to the financial boost, the operation enhances Cosan’s corporate governance. Aguassanta, the vehicle of controlling shareholder Rubens Ometto, will retain 50.01% of the shares linked to the agreement, which will be valid for 20 years. Ometto or an appointee will continue as chairman for three terms.
Raízen and Other Assets Remain on the Radar
Although Raízen is not directly benefited by the capitalization, the company continues to seek new partners to reduce its debt, which reached R$ 49.2 billion at the end of the second quarter.
Cosan’s portfolio still includes strategic companies such as Rumo (rail logistics), Compass (natural gas), Moove (lubricants), and Radar (agricultural property management).
The expectation is that, with more financial breathing space, the holding company can conduct divestments in a planned manner, avoiding immediate market pressures.
Billion-Dollar Capitalization Brings Risks and Opportunities
Cosan’s move illustrates the challenges faced by large conglomerates in periods of rising interest rates and high debt levels.
On one hand, the sharp drop in the stock market exposes investors’ fears regarding share dilution. On the other hand, the entry of strategic partners like BTG Pactual opens space for the company’s restructuring and strengthening of governance.
In the coming months, the performance of the shares and the management of the divestment strategy will be crucial to restoring market confidence.
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