Brazilian conglomerate Cosan SA is considering an initial public offering of its gas and energy business unit to help reduce its debt burden, according to the company. The move comes as the company's sugar unit faces mounting financial pressures.

The potential IPO of the gas and energy division represents a strategic shift for Cosan as it seeks to streamline operations and strengthen its balance sheet. The company has been exploring various options to address its debt levels, with the sugar business unit particularly affected by market conditions.

By potentially separating its gas and energy operations through an IPO, Cosan aims to unlock value and provide the unit with greater financial flexibility. The decision reflects the company's efforts to optimize its portfolio and focus on its core businesses while addressing debt concerns in its sugar operations.