UPDATE 1-Brazil sugar maker Raizen sells two mills in divestment push

Shell Plc Sponsored ADR +1.16%
Dow Jones Industrial Average -0.13%
S&P 500 index +0.11%
NASDAQ +0.18%

Shell Plc Sponsored ADR

SHEL

93.10

+1.16%

Dow Jones Industrial Average

DJI

46504.67

-0.13%

S&P 500 index

SPX

6582.69

+0.11%

NASDAQ

IXIC

21879.18

+0.18%

Adds details on transaction in paragraphs 3-4

SAO PAULO, Aug 29 (Reuters) - Brazilian sugarcane processor Raizen RAIZ4.SA has agreed to sell the Rio Brilhante and Passa Tempo mills to Cocal Agroindustria in a deal totaling 1.54 billion reais ($284.07 million), it said in a securities filing on Friday.

The move is part of a broader divestment strategy by one of the world's largest sugar producers, a joint venture between conglomerate Cosan CSAN3.SA and London-listed oil major Shell SHEL.L, in the face of operational challenges and high debt.

The deal accounts for 1.3 billion reais for the value of the two mills, as well as an additional 218 million reais related to this year's off-season maintenance investments, which will be paid by Cocal Agroindustria, Raizen said.

Once the deal is completed, Raizen will operate 25 mills with a crushing capacity of 75 million metric tons per harvest, the filing said.


($1 = 5.4212 reais)


(Reporting by Gabriel Araujo and Oliver Griffin
Editing by David Goodman and Tomasz Janowski)

((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))

This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.