UPDATE 4-Brazil's Cosan proposes $4.7 bln takeover of railway firm ALL

lunes 24 de febrero de 2014 18:48 GYT

* ALL would hold 63.5 percent equity in new company

* Cosan's Rumo would name most of the board, have control

* Rumo pricing ALL shares at premium of 56 percent

By Reese Ewing and Roberta Vilas Boas

SAO PAULO, Feb 24 (Reuters) - Brazilian sugar and ethanol firm Cosan SA proposed on Monday to take over America Latina Logistica SA in a $4.7 billion deal that would form Latin America's largest railway and logistics company.

The planned takeover, which Cosan officials expect ALL's board and shareholders to approve, would create a new logistical giant in a country where access to cheap transportation infrastructure comes at a premium.

By creating a bigger player in the sector that is still underdeveloped by Cosan, chairman and controlling shareholder Rubens Ometto will further his conglomerate's interests ranging from agribusiness to fuel distribution. Under the terms of the deal, shareholders of ALL, as America Latina Logistica is commonly known, would own most of the capital of the combined entity, while Cosan would name most of its board members.

"We think the operational integration of ALL and (Cosan's) Rumo could result in quick wins due to asset turnover optimization to transport sugar, ethanol and soybeans," UBS Securities analyst Victor Mizusaki wrote in a client note.

In a separate securities filing, ALL said the combined value of the new company would total 10.96 billion reais ($4.7 billion), of which ALL shareholders would hold 63.5 percent. Cosan is proposing to value ALL shares at 10.184 reais per share, a 56 percent premium to its closing price on Friday.   Continuación...