IG4 Capital seeks controlling stake in Brazil's Raízen through debt purchase

IG4 Capital has sent letters to Raízen's creditors proposing to acquire more than half of the company's debt that will be converted into equity under the ongoing restructuring plan. The proposal aims to give IG4 a little over 50% ownership once the conversion, which would turn about 45% of roughly R$65 billion of debt into around 80% of the capital, is completed. Creditors may receive fund units, cash, or derivatives linked to the future sale of IG4's stake.

The move follows IG4’s recent acquisition of control of petrochemical giant Braskem earlier this month, where it now holds a 50.1% voting stake through the Shine fund alongside Petrobras. IG4 plans to use a dedicated investment fund to hold any Raízen shares it acquires.