UPDATE 1-Brazil's Cosan sells aviation fuel unit to Shell
(Adds Cosan comments, share performance)
SAO PAULO, May 20 (Reuters) - Brazilian sugar and ethanol producer Cosan (CSAN3.SA) (CZZ.N) said on Wednesday it agreed to sell its aviation fuel business to Shell Brasil Ltda, the domestic unit of Royal Dutch Shell Plc (RDSa.L), for $75 million.
The sale is expected to be completed in 30 days, Cosan said in a statement. Cosan took over the aviation fuel business when it bought the Brazilian fuel distribution from Exxon Mobil Corp (XOM.N) in 2008 for about $830 million.
The sale was part of a plan by Cosan to sell non-core assets as it focuses on its main ethanol and sugar business. Cosan had bought Exxon Mobil's Brazil assets to gain a presence in 1,500 filling stations across the country and guarantee a distribution channel for ethanol.
Cosan said the aviation business, with locations in Brazil's seven largest airports, was not considered part of the company's strategic business.
"With the sale of this asset, besides boosting its liquidity, Cosan maintains its strategy to focus investments in the main activities of its business strategy," the company's statement said.
Cosan shares jumped 3.3 percent to 15.6 reais in early trading, compared with a 1.3 percent gain in the benchmark Bovespa index .BVSP. The shares climbed 38 percent so far in 2009, in line with the 38.5 percent rise in the Bovespa over the same period. (Reporting by Elzio Barreto, editing by Maureen Bavdek)
