PRESS RELEASE
COSAN LIMITED
(NYSE: CZZ) (
Cosan
or
Company
) hereby informs the market in general that Raízen
Combustíveis S.A. (Raízen Combustíveis), indirectly controlled by the Company, and its subsidiary Raízen Conveniências S.A. (Raízen Conveniências), both part of the Raízen
Group of companies, entered, on this date, into a Share Purchase and Investment Agreement with Femsa Comércio, S.A. de C.V. and companies pertaining to its economic group (together, Femsa Comércio), which establish the
terms and conditions for the acquisition of interest in Raízen Conveniências by Femsa Comércio, as well as the formation of a joint venture in Brazil (Transaction).
Transaction Summary
Upon the closing of the
Transaction, Femsa Comercio will hold 50% of the capital stock of Raízen Conveniências, through the subscription of new shares and also the direct purchase of existing shares of the companys capital stock currently held by
Raízen Combustíveis. For the Transaction, an Enterprise Value of R$1,122 million was considered, based on the acquisition of interest in a company free of any debt or cash.
Following the implementation of the Transaction, Raízen Combustíveis and Femsa Comercio will be shareholders of Raízen
Conveniências in the proportion of 50/50 of the share capital. The joint venture will have its own professional and corporate governance structure.
The closing of the Transaction will be subject to approval by the Administrative Council for Economic Defense (CADE) and the implementation of certain usual
precedent conditions.
Transaction Purpose
The purpose of this Transaction is the expansion of the convenience franchise store business in service stations under the Shell Select brand and
the development of the proximity store business outside service stations under the OXXO brand.
This partnership with Femsa Comercio
represents an important step towards expanding the convenience and proximity market in Brazil, ensuring even more efficiency in Raízen Groups investments and in its operations, as well as offering a better value proposition to our
franchisees.
About FEMSA
Femsa Group has
proven track record of profitable growth in Latin America. It participates in the retail industry through Femsa Comercio, comprising a Proximity
Division
operating under OXXO, with more than 18,000 stores in Mexico, Chile, Colombia and Peru, a Health Division, which includes drugstores and related activities, and a Fuel Division, which operates the OXXO GAS chain of retail service stations. Through
its business units, Femsa Group has more than 297,000 employees in 13 countries.
São Paulo, August 06, 2019
Marcelo Eduardo Martins
Chief Financial and Investor Relations Officer