IG4 wants to know if you're interested in buying Brazil's Raizen before March 2027

Top executives at IG4 said on Monday that the firm is aiming to complete a potential purchase of a Brazilian sugar and ethanol manufacturer Raizen before March 2027. This will depend on whether or not creditors approve, they added. IG4, who recently acquired co-control over petrochemical company Braskem is now looking to take control of Raizen after the producer announced a 65 billion reais (12.7%) debt restructuring plan, a project that will be completed by the end March.

IG4's pursuit for Raizen comes on the heels its sale of a controlling'stake' in Corredor Logistica e Infraestrutura to AD Ports Group in partnership with Macquarie Group. This divestment, which was made in partnership with Macquarie Group and valued at $835 million, highlights the fund's increasing focus on agribusiness.

Helio Novaes - the newly appointed CEO of IG4 - said: "We are turning our attention towards the agro industry, which is robust, but faces several challenges."

Paulo Mattos is the co-founder and Chairman of IG4 and he says that the non-binding proposal to Raizen's creditor offers a few options. These include?a cash payout, as well?as a selection for creditors who would prefer to continue to invest in Raizen through quotas within an IG4 Fund.

Mattos has not disclosed the exact cash amount that was offered to creditors.

Last week it was reported that Moelis & Company, an independent investment bank, and Journey Capital, a financial consultancy, who were advising Raizen's creditor, had received a nonbinding offer by IG4. Both refused to comment.

Mattos said that IG4 had a history of taking over or co-controlling?of companies, and believes a turnaround can only be effective with a majority share. Mattos also denied that investment bank BTG was involved in the deal. He clarified that BTG 'has invested' in IG4 funds but does not hold a controlling stake or equity in the 'company.

Executives said IG4’s strategy doesn't involve hostile takeovers but rather seeks to build up support from stakeholders and creditors. It will then seek to negotiate with the remaining major shareholders if it can secure commitments equivalent to 50% plus 1 of Raizen's share from creditors and other stakeholders.

In a separate Monday interview, Raizen Chairman Rubens ometto dismissed IG4’s bid by saying that it was?just a rumor. He said that the financial market was full of?creative ideas.

Mattos and Novaes stated that the growth of IG4, which currently has?40 professionals on staff, as well as the divestment from CLI, have opened up new opportunities for deals.

They added that the private equity firm is focused on investing in fewer companies and aims to invest in larger, more complex and global deals.

(source: Reuters)