IG4 is targeting a binding commitment to buy control of Brazilian sugar and ethanol producer Raizen by the end of March 2027, company executives told Reuters on Monday. The private equity firm said the timetable depends on winning sufficient backing from Raizen’s creditors following a formal pitch.
The move comes as Raizen advances a 65 billion reais debt restructuring plan that is scheduled to be completed by the end of March. IG4, which recently obtained co-control of petrochemical firm Braskem, is positioning itself to take control of Raizen once creditor support is secured.
IG4’s interest follows the firm’s recent sale of a controlling stake in Corredor Logistica e Infraestrutura (CLI) to AD Ports Group for $835 million, a transaction conducted in partnership with Macquarie Group. Executives at IG4 said that process and the firm’s evolving portfolio have reinforced a strategic shift toward the agribusiness sector.
"We’re turning our attention to the agro sector, which remains robust but is facing several difficulties," said Helio Novaes, IG4’s newly appointed chief executive. Novaes framed the firm’s approach as opportunistic but deliberate, targeting large, complex assets where IG4 believes it can create value.
Paulo Mattos, IG4 co-founder and chairman, described a non-binding offer that the firm has submitted to Raizen’s creditors. According to Mattos, the proposal includes multiple options for creditors: a cash payment, or for those who prefer to remain invested in Raizen, the chance to receive quotas in an IG4 fund. Mattos did not disclose the specific cash amount included in the offer.
Last week, advisers to Raizen’s creditors - independent investment bank Moelis & Company and financial consultancy Journey Capital - received a non-binding offer from IG4, Reuters reported. Both advisers declined to comment on the approach, according to IG4’s account of the outreach.
Mattos emphasized IG4’s track record of acquiring control or co-control of companies, saying the firm believes turnarounds are most effective when holding a majority stake. He also rejected reports that investment bank BTG holds a controlling or equity stake in IG4, clarifying that while BTG has invested in IG4’s funds, it does not control the firm.
IG4’s executives stressed that their strategy does not rely on hostile takeovers. Instead, the firm seeks to build consensus among creditors and other stakeholders. IG4 has stated that if it secures commitments from creditors and stakeholders representing 50% plus one of Raizen’s shares, it would then attempt to negotiate with remaining large shareholders to consolidate control.
Raizen’s chairman, Rubens Ometto, was dismissive of IG4’s bid in a separate interview on Monday, describing it as a rumor. "The financial market is full of creative ideas," he said.
IG4, which the executives said currently employs 40 professionals, has said that the divestment of CLI has opened capacity for additional transactions. Mattos and Novaes indicated the firm is refocusing its investment efforts on a smaller number of companies while pursuing larger, more complex and global deals.
The proposed timeline and path to control remain contingent on the outcome of creditor deliberations and the final structure of Raizen’s debt restructuring plan, now targeted for completion by the end of March. ($1 = 5.1398 reais)