COSAN : family-controlled company
Complex structure deters other investors and leads to discounts upon discounts. Cosan Ltd is a US listed holding company with a complex structure. It has stakes in two listed holding companies, Cosan SA (‘CSAN3’) and Cosan Logistica (‘RLOG’), each of which own listed and unlisted assets in Brazil. While run by highly competent management, the complex structure of the group deters other investors and has led to discounts upon discounts. Since we began investing in Cosan Ltd in July 2017, we have noted a huge upside from simplification of the group structure. With a history of strong performance (2019 having been particularly strong) we still have a 27%* look-through discount and significant potential increase in value.
*AVI estimate at 31 December 2019