SALIC and Marfrig invest $900 million in Brazilian BRF

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AK&M 02 June 2023 18:04

SALIC (Saudi investment company in the field of agriculture and animal husbandry) and the largest Brazilian meat producer Marfrig Global Foods S.A have signed an investment agreement in the Brazilian company BRF SA. This is reported in the press release of SALIC.

BRF SA, a Brazilian food processing company, plans to issue 500 million new shares worth $900 million (9 reais per share, which is 23.8% higher than the closing price on May 30, 2023).

As part of the deal, SALIC and Marfrig are ready to invest 50% of the total amount ($450 million each) as part of the placement of shares.

As a result of the transaction, Marfrig's stake will increase from 33% to 38.7%, and SALIC will own a minority stake in BRF.

The agreement is subject to approval by BRF shareholders, taking into account the increase in the participation limit from 33%, set as the maximum allowable share for external investors.

The transaction is aimed at improving the capital structure of BRF in accordance with the obligation to reduce the debt burden.

SALIC is a private company in the agricultural production sector with headquarters in Riyadh (Saudi Arabia). The company is owned by the Saudi State Investment Fund (PIF) and owns a 31% stake in Brazilian beef producer Minerva SA.

Marfrig is the second largest Brazilian food processing company after JBS and the second largest beef producer in the world. The company owns production sites in 22 countries and exports products to 100 countries. The headquarters is located in Sao Paulo (Brazil). 

BRF S.A. is a Brazilian food processing company under the brands Sadia, Perdigão, Quali, Paty, Dánica and Bocatti. The company's products are sold in 150 countries. BRF has 50 production sites in eight countries: Argentina, Brazil, the UAE, the Netherlands, Malaysia, the UK, Thailand and Turkey.