Cosan okays incorporation of fuel distribution subsidiary
Nov 9, 2011 - The management board of Brazil's sugar and ethanol group Cosan (SAO:CSAN3) unanimously approved on Monday the incorporation of its wholly-owned fuel distribution subsidiary, Cosan Distribuidora de Combustiveis, according to information released yesterday.
Hence, the completion of the operation depends only on the approval by part of the shareholders which will vote on the issue at an extraordinary general meeting called for November 23, 2011.
The incorporation of the unit aims at simplifying the corporate structure and optimising the business results and operations of the companies. The change will contribute to the reduction in operating costs and to a more efficient administration, Cosan said.
As Cosan Distribuidora de Combustiveis is already a fully-owned subsidiary, there will be no capital increase.
The incorporation is estimated to cost BRL 50,000 (USD 28,859/EUR 21,085), with no liabilities or not accounted for contingent liabilities to be absorbed by Cosan, the company also noted.
(BRL 1 = USD 0.577/EUR 0.422)