Marfrig Alimentos, now Brazil’s second largest poultry processor and a major global meat processor, is selling as much as 1.36 billion reais (US$793 million) of new shares, reported Bloomberg.
Approximately 75% of the money raised by the new shares sale will be used to pay for the purchase of Seara from Cargill, Brazil’s third largest poultry and pork business. Marfrig had originally planned to sell the shares October 29, but delayed and reduced the size of its planned sale as Brazilian stocks tumbled, following the government’s 2% tax on foreign purchases of equities.
In late October Marfrig had announced its third-quarter results, with a net income of 200.5 million reais (US$115.7 million), compared to a loss of 52.7 million reais, a year earlier, reported Bloomberg.
Net sales jumped 58% to 2.4 billion reais in the third quarter. Beef, poultry and pigs accounted for 66% of total costs of products sold.
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