Time New York: Tue 17 Oct 22:08 pm  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

Cosan (CZZ) to Buy 16.8% Interest in Comgas From Shell

Zacks

Cosan Limited’s CZZ business unit, Cosan S.A. Industria e Comercio yesterday announced that Cosan Limited will buy approximately 16.8% interest in Comgas from Shell Gas B.V, Integral Investments B.V and Shell Brazil Holding B.V. (Shell).

Cosan S.A. operates its business through Raizen Energia, Raizen Combustiveis, Comgas, Moove and Cosan Corporate. Notably, at the end of second-quarter 2017, Cosan S.A. had approximately 63.1% interest in Comgas — dealing in natural gas distribution.

Year to date, Cosan’s American Depository Receipts have yielded 20.1% return, outperforming 12% gain of the industry.



Details of the Deal

As revealed, put option on the shares issued by Comgas has been exercised by Shell. In compliance with Shell’s rights under the put option, Cosan Limited will buy approximately 21.8 million Comgas shares for an estimated value of R$53.05 per share.

In lieu of the shares, Cosan will transfer approximately 20.3 million shares issued by Cosan S.A. to Shell. These shares will represent roughly 5% of the equity capital of Cosan S.A. Additionally, the company will pay U.S. dollar equivalent amounts of R$208.7 million upon closing of the deal and R$214.9 million after a year.

Upon completion of the deal, Cosan will end its shareholders’ agreement, relating to Comgas, with Shell.

Cosan Limited Price and Consensus

Cosan Limited Price and Consensus | Cosan Limited Quote

Zacks Rank & Key Picks

With a market capitalization of approximately $2.4 billion, Cosan presently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the Basic Materials sector include FMC Corporation FMC, Air Products and Chemicals, Inc. APD and Monsanto Company MON. While FMC Corporation sports a Zacks Rank #1 (Strong Buy), both Air Products and Chemicals and Monsanto carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FMC Corporation’s earnings estimates for 2018 improved over the past 60 days. The company delivered a positive earnings surprise of 2.13% in the last quarter.

Air Products and Chemicals’ earnings estimates for fiscal 2018 improved over the past 60 days. Also, the company pulled off an average positive earnings surprise of 1.77% for the last four quarters.

Monsanto’s earnings estimates for fiscal 2018 and fiscal 2019 have been revised upward over the last 60 days. Also, the company delivered an average positive earnings surprise of 244.78% for the last four quarters.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.