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 interest.
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