The shareholders of BRF-Brasil Foods (formerly Perdigao), and Sadia approved the merger of the two companies at a special shareholder meeting on August 18. Investors approved the merger of Sadia’s common stock and preferred shares by BRF, resulting in a $1.26 billion (R$2.33 billion) increase in BRF’s share capital through the issue of 59.3 million common shares at no par value.
Sadia shareholders will get 0.13 share for each common share of the merged entity. Investors holding Sadia shares have a month to adjust their market positions or exercise their withdrawal options. The shares of the merged entity will begin trading September 22.