Brazil's Cosan issues $113 million in new shares as part of restructure
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FILE PHOTO: The company logo for Cosan is displayed on a screen on the floor of Brazil's B3 Stock Exchange in Sao Paulo, Brazil, July 25, 2019. Picture taken July 25, 2019. REUTERS/Amanda Perobelli
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RIO DE JANEIRO (Reuters) - Brazilian sugar and ethanol producer Cosan SA will issue roughly 638 million reais ($113 million) of new share capital to fully incorporate shareholders of subsidiary Cosan Logistica SA, the company said on Tuesday.
In December, Cosan said it planned to undergo a reorganization and list American Depository Shares, or ADSs, for the first time.
Under the restructuring, Cosan Limited, or CZZ, thecompany's financial arm, as well as logistics branch CosanLogistica, itself a CZZ subsidiary, are to be fullyincorporated into Cosan.
In the securities filing on Tuesday, Cosan said that no Cosan Logistica shareholders had withdrawn from the company rather than except the terms of the merger.
As a result, Cosan issued 31,025,350 new common shares at a price of 20.58 reais a share, a total subscription price of 638,374,501 reais, the company said.
Shares in Cosan Log will stop trading on March 8.
By concentrating the free-float of various companies into one stock, and listing that stock in New York via ADSs, the company expects Cosan shares to be more heavily traded, it has said.
Cosan also expects the move will help to raise cash via future follow-on offerings and possible initial public offerings.
($1 = 5.64 reais)
(Reporting by Gram Slattery. Editing by Jane Merriman)
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