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Cosan (CZZ) to Buy 16.8% Interest in Comgas From Shell
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Cosan Limited’s 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.
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 - Free Report) , Air Products and Chemicals, Inc. (APD - Free Report) and Monsanto Company . 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.
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Cosan (CZZ) to Buy 16.8% Interest in Comgas From Shell
Cosan Limited’s 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).
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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 - Free Report) , Air Products and Chemicals, Inc. (APD - Free Report) and Monsanto Company . 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.
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