IG4 Capital prepares binding offer for control of Raízen

IG4 Capital intends to present a binding offer to the creditors of Raízen within three weeks in an attempt to take control of the company. Raízen is currently undergoing the largest extrajudicial recovery process in Brazil, with a debt totaling approximately R$ 65 billion.

The management firm's strategy involves acquiring more than 50% of the credits to facilitate necessary adjustments. The proposed payment methods include cash and credit rights, where creditors transfer credits to the manager to be converted into shares of the new business. This approach mirrors the model used by IG4 in the restructuring of Braskem.

Raízen's recovery plan involves splitting the joint venture between Shell and Cosan into two distinct entities: one focused on fuels and another on sugar and alcohol. IG4 is specifically interested in the sugar and alcohol operations and is reportedly in discussions with Shell to navigate the legal constraints regarding changes in control.