SAO PAULO, Dec 17 (Reuters) - Brazilian sugar and ethanol company Cosan SA plans to undergo a reorganization and list American Depository Shares, or ADSs, for the first time, in a move the firm believes will increase share liquidity, the company said on Thursday.
Under the planned reorganization, Cosan Limited, or CZZ, the company’s financial arm, as well as logistics branch Cosan Logistica SA, itself a CZZ subsidiary, will be fully incorporated into Cosan.
Cosan Logistica, via its own subsidiary Rumo SA, is active in the railway sector, especially the transportation of grains.
By concentrating the free float of the various inter-related companies into one stock, and listing that stock in New York via ADSs, the company expects Cosan shares to be more heavily traded, it said in a statement.
Cosan expects the move, which will need the approval of the shareholders in the listed companies involved, will also help raise cash via future follow-on offerings and possible initial public offerings. (Reporting by Roberto Samora; Writing by Gram Slattery; editing by Grant McCool)