Cosan weighs selling $2.2B Vale stake to ease debt – Bloomberg

Cosan (NYSE:CSAN) is considering a sale of assets including its $2.2B stake in Vale (VALE) as it seeks to pay down debt, Bloomberg reported Friday.

The Brazilian sugar and ethanol producer has told investors that all options are on the table to improve its balance sheet, including selling part or all of its 4.1% interest in the iron ore producer, as well as the sale of an Argentine gasoline distributor it owns in a joint venture with Shell (SHEL), according to the report.

The company has seen shares plunge to the lowest level in more than four years, as investors are skeptical of its ability to spend cash efficiently since its 2022 decision to take on debt to buy the Vale (VALE) stake that has since lost value.

Cosan (CSAN) is coping with high interest rates in Brazil and lower profits from its sugar and ethanol business, while also struggling to move forward with plans to sell shares of its lubricant and gas businesses.