Investors in Biosev SA late on Monday exercised a put
option to sell back 619.7 million reais ($279 million) worth of
shares to the Brazilian ethanol producer controlled by Louis
Dreyfus Corp, according to a securities filing.
The agreement, signed when Biosev had its initial public
offering in April 2013, calls for the owners of 37.402 million
common shares to sell back their stock at a price of 16.57 reais
each, or the equivalent of the IPO's 15 reais cut-off price plus
The IPO raised 814.4 million reais. About 80 percent of
investors participating in offering bought the option, the
company said at the time.
Shares of Biosev have fallen 50 percent since the IPO as
fuel price controls in Brazil led the company to post losses for
a third straight year.
According to the filing, Biosev's outstanding shares in
circulation, or the so-called free-float, will fall to 23.4
percent of the company's capital from 41.4 percent prior to the
exercising of the put option.
($1 = 2.22 Brazilian reais)