By Brazil Stock Guide – Cosan SA (B3: CSAN3; NYSE: CSAN) signed a letter of intent to sell its entire stake in the TUP São Luís private port terminal for an indicative R$300 million, according to a company statement released on Aug. 13.
The proposal was submitted by an unidentified third-party buyer and grants an exclusivity period for negotiations and the execution of definitive transaction documents, Cosan said.
Earn-out tied to additional berths
The R$300 million indicative price would be paid when the transaction closes. Cosan may also receive an earn-out of an indicative R$50 million for each potential new berth developed or scheduled to be developed at TUP São Luís through 2035, in addition to the terminal’s main berth.
The amounts will be adjusted by the accumulated change in Brazil’s IPCA inflation index from the date the proposal was accepted until the respective payment dates.
Transaction remains subject to conditions
The acceptance of the proposal and the implementation and completion of the sale remain subject to customary conditions precedent, as well as the negotiation of definitive agreements.
Cosan said it will keep shareholders and the market informed about developments in accordance with applicable regulations.
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