Cosan Slumps as $2-Billion Deal Cuts Debt, Dilutes Shares (2)

Cosan SA shares slumped the most intraday on record after the struggling Brazilian conglomerate reached a deal to raise as much as 10 billion reais ($1.9 billion) to improve its finances while also diluting current shareholders.

BTG Pactual Holding, whose partners include billionaire Andre Esteves, will invest 4.5 billion reais and Perfin Infra Fund will add another 2 billion reais, Cosan said. The proceeds will be used to reduce leverage, the company said in a filling.

The deal also includes 750 million reais from Cosan founder Rubens Ometto’s family office. There will be a follow-on offering of ...