By Brazil Stock Guide — Dexco plans to transfer a portfolio of forestry assets and real estate currently held by its wholly owned subsidiary Duratex Florestal directly onto the parent company’s balance sheet, in a reorganization aimed at improving the financial use of those assets and facilitating future fundraising.
The transaction will be submitted to shareholders at an extraordinary general meeting scheduled for October 26. The net assets to be absorbed by Dexco were valued at R$38.1 million, based on figures as of July 31, 2026.
According to management’s proposal, the partial spin-off of Duratex Florestal will allow Dexco to use the assets directly in its operations and in financing structures, while also improving administrative and operational efficiency.
The portfolio includes R$19.3 million in biological assets and R$21.4 million in real estate, offset by R$2.6 million in deferred tax liabilities, resulting in a net book value of R$38.1 million.
The reorganization will not change Dexco’s share capital and will not involve the issuance of new shares or dilute existing shareholders, as Duratex Florestal is already wholly owned by the company.
At the same meeting, shareholders will vote on a separate proposal designed to increase Dexco’s financial flexibility. Management wants to raise the company’s authorized share limit to 1.058 billion common shares from 920 million, allowing the board to approve future share issuances within that ceiling without requiring another amendment to the bylaws.
Dexco currently has 919.034 million shares outstanding, leaving its existing authorization almost fully used. Under the proposed new ceiling, the company would have room to issue roughly 139 million additional shares, equivalent to about 15% of its current share count.
Dexco has not announced a share offering or capital increase. Management said only that the higher limit is intended to preserve financial flexibility in line with the company’s business needs and strategy.
The existing authorization was nearly exhausted after a capital increase approved in December 2025 through the capitalization of reserves and a bonus share distribution. Following that transaction, Dexco’s share capital rose to R$4.37 billion, divided into the current 919.034 million shares.
The October meeting therefore brings together two separate but related moves in Dexco’s financial strategy: the direct transfer of forestry and real estate assets to the parent company to improve their financial utilization, and the restoration of headroom for potential future share issuances.
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