Brazil SLC reviews offer terms after Radar portfolio sale

SLC Agricola said Thursday that it received a notice about the sale of properties in the Grupo Radar portfolio. The company has an active lease agreement covering about 17,600 hectares for agricultural use on those properties.

SLC stated it is reviewing the commercial terms of the offer. It will respond within the applicable deadline about whether it will exercise its right of first refusal, as outlined in the current contracts.

On Wednesday, Cosan reported that Grupo Radar, through some of its subsidiaries that own agricultural properties with Cosan investments, signed a commitment to sell part of its portfolio.

The properties represent 12 percent of the total agricultural land held by Radar. They are located in the state of Mato Grosso and cover a total area of 41,214 hectares. The land is used to grow soybeans, corn, and cotton.

The sale involves properties where SLC holds a lease. The company now has to decide whether to match the offer and keep the land under its control. This type of right of first refusal is common in long-term agricultural leases, giving the current tenant a chance to buy the land before it is sold to a third party.

SLC Agricola is one of Brazil’s largest producers of grains and cotton. The company operates farms in several states and often leases land for its operations. The outcome of this decision could affect the company’s production plans in the region.