SAO PAULO, Jan. 16 (Reuters) - Brazilian conglomerate Cosan announced on Thursday that it has sold around 173 million shares it held in Vale, reducing its debt by some 40%. This sale, representing a stake of approximately 4.05% in the mining giant, was made to optimize its capital structure, without disclosing specific financial details.
Reportedly, Cosan raised about 9 billion reais ($1.5 billion) from the sale, cutting its debt to around 14 billion reais. Earlier, they had disposed of approximately 33 million shares as part of their deleveraging strategy.
Cosan, which originally held a 4.9% stake in Vale, engaged in a 21 billion-real transaction concerning its dispersed ownership. Cosan Chairman Rubens Ometto highlighted that the decision to sell was influenced by Brazil's high interest rates, aiming to reduce the company's leverage ratio under the current economic circumstances.
Despite the loss incurred by the transaction, investors welcomed the move, leading to an increase of up to 8.6% in Cosan's shares initially. Analysts from J.P. Morgan viewed the sale positively, emphasizing a strategic focus on reducing leverage and realigning with the integrated energy platform.
On the market side, Vale's shares saw a slight rise of 0.4%, with Goldman Sachs analysts noting investor attention on Cosan's stake sale as a potential market factor. ($1 = 6.0097 reais)