Eyeing control of Brazil's Raizen, IG4 approaches Moelis and Journey

By Luciana Magalhaes

SAO ‌PAULO, June ​16 (Reuters) - ​Independent investment bank Moelis & Company and financial consultancy firm Journey Capital, advisers to creditors ‌of sugar and ethanol producer Raizen, received non-binding ⁠offers from private equity firm IG4 late on Monday to ‌acquire credits and control ‌of the company, according to three people familiar with the matter.

Two of them cautioned that any ​deal remains far from certain, with one adding that creditors are unlikely to reach a decision ⁠anytime soon.

One of the three said creditors accepted Raizen's offer to ​convert debt into equity because it was the best alternative available, but that they would ​prefer not to remain shareholders.

"So (the ‌success of the proposal) will come down 100% to the conditions offered by ⁠IG4," the person said.

IG4, Moelis and Journey Capital declined to comment.

IG4, which recently became co-controller of petrochemical producer ⁠Braskem alongside oil giant Petrobras, is seeking to purchase control ​of Raizen, which just announced a 65 billion reais ($12.7 billion) debt restructuring with local and international creditors, the largest out-of-court ‌restructuring on record in Brazil.

Known for pursuing control or co-control of its acquisitions, ‌IG4 will likely move forward with the offer only ⁠if it secures ‌at least 50% plus ​one of the restructured credits, the people said.

(Reporting by Luciana Magalhaes; Editing by Will ‌Dunham)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Citadel unwinds 80% of Aschenbrenner’s portfolio risk - report
• LivePerson extends special meeting deadline for SoundHound AI merger vote
• US finalizes deep Colorado River water cuts to California, Nevada and Arizona