Key facts
- Private equity firm IG4 is seeking to acquire control of Brazilian sugar and ethanol producer Raizen.
- The potential acquisition is targeted for completion by the end of March 2027.
- IG4's bid is contingent on securing commitments from Raizen's creditors.
- Raizen is undergoing a 65 billion reais debt restructuring agreement.
- IG4 recently gained co-control of petrochemical firm Braskem.
- Raizen Chairman Rubens Ometto dismissed IG4's bid as a rumor.
Private equity firm IG4 is aiming to acquire control of Brazilian sugar and ethanol producer Raizen by the end of March 2027, pending a successful pitch to creditors. The move follows Raizen's announcement of a 65 billion reais ($12.7 billion) debt restructuring agreement, which is set to be completed by the same deadline.
IG4, which recently gained co-control of petrochemical firm Braskem, is focusing on the agribusiness sector. Helio Novaes, IG4's chief executive, stated the sector remains robust but faces difficulties. Co-founder Paulo Mattos explained that IG4's non-binding offer to Raizen's creditors includes options for cash payment or receiving quotas in an IG4 fund.
Advisers to Raizen's creditors, Moelis & Company and Journey Capital, have reportedly received the non-binding offer. IG4's strategy, according to Mattos, involves securing a majority stake and does not pursue hostile takeovers. He clarified that investment bank BTG, while an investor in IG4's funds, does not hold a controlling stake in the firm.
However, Raizen Chairman Rubens Ometto expressed skepticism about IG4's bid, calling it a rumor. IG4's recent divestment of a controlling stake in Corredor Logistica e Infraestrutura (CLI) to AD Ports Group for $835 million, in partnership with Macquarie Group, underscores its growing focus on agribusiness and larger, complex deals.