Brazilian biofuels maker Raizen SA is putting a portion of its fuel distribution business for sale while also giving shareholder Shell Plc a meaningful stake in the profitable business unit, according to people familiar with the matter.

The deal comes as Raizen is moving ahead with a company split that’s part of a broader business restructuring, said the people, who did not want to be identified as not all details are public. Shareholders are likely to approve the final moves in the reorganization in a meeting on Friday.

The company will announce after a vote at the meeting that it will look for a partner for its fuel distribution unit, which operates Shell-branded stations, one of the people said. Under the company restructuring, creditors have agreed to a debt-to-equity conversion that will give them more than 80% of the company’s capital. Any sale of a stake in the fuel unit will only occur after the conversion, the person said.

Shell will hold a stake of less than 20% in the fuel distribution company after the conversion of debt into equity, according to the person. In addition, Shell will gain some rights due to the use of their brand, such as a say in the choice of a partner.

The restructuring includes a “poison pill” clause. If any other shareholder achieves a stake higher than 25% in the fuel distribution company, the new investor will have to make a tender offer to acquire the remaining shares, according to the proposal that will be voted on. Shell and Raizen each declined to comment.

Raizen’s fuel distribution business is one of the largest in Brazil, and has recently benefited from cascading impacts of the Iran war, which pushed diesel prices higher and limited competition from fuel importers. The sugar and ethanol side of the business, on the other hand, has seen more headwinds from growing biofuel supplies and a period of lower commodity prices earlier this year.

Raizen has been struggling under a series of bad strategic bets, high interest rates and weak harvests. The company, which was jointly owned by Shell and Brazilian conglomerate Cosan SA, reached an agreement with creditors in March to restructure about 65 billion reais ($12 billion) of debt out of court.

Lorival Luz, Raizen’s current chief financial officer, will be appointed chief executive officer of the fuel distribution company, according to the people. He was a key player in the restructuring process, personally dealing with Raizen’s creditors. Sam Aguirre, senior managing director at FTI Consulting, which advised banks in Raizen’s debt restructuring, will be appointed as chairman of fuel unit.

Raizen’s sugar and ethanol production business will be separated into a different company, to be led by Geovane Consul, the people said. He was already the vice president of the unit running Raizen’s sugarcane mills. The sugarcane business will also have a poison pill clause to be triggered in case any shareholders reaches a stake of 20% or more. Julio Piza will be appointed as chairman of that unit.

The company earlier this week reached a tax settlement with Brazil’s Office of the Attorney General of the National Treasury and Federal Revenue Service covering 22.4 billion reais in tax liabilities, a key condition of the restructuring. Under the agreement, Raizen will pay 2.5 billion reais in cash.

The changes at Raizen follow moves by potential buyers who had been looking at the possibility of acquiring Raizen’s debt before the debt-to-equity conversion. Biofuels producer FS, Abu Dhabi’s sovereign wealth fund Mubadala Investment Co. and IG4 Capital Group had previously indicated interest, Bloomberg reported earlier.

Raizen’s finances have shown signs of improvement recently, with the company reporting a positive cash generation from operations in the period covering April through June.