BRF is offering up to 600 million of its common shares of stock, the company announced in a material fact on its investor relations webpage.
According to the document, there will be a base offering of 500 million newly issued common shares, which may be increased by up to 20% of the total number of common shares of BRF initially offered in the base offering, or up to 100 million common shares to be issued and sold by the Brazil-based BRF.
This offering follows a May 30 offering, in which Saudi Agricultural and Livestock Investment Company (SALIC) committed to purchase up to 250 million shares of common stock. That commitment remains subject to the fulfillment of certain customary conditions, including that fellow Brazilian protein company Marfrig Global Foods submits a commitment for subscription of up to 250 million shares.
The pricing for the offering is expected to take place on July 13, and the beginning of tradition of the offered shares on the Sao Paulo Stock Exchanges is expected to take place two business days later, while the settlement of the offering will take place one day after that.
The offering will not be registered in the United States, the company stated.
Marfrig Global Foods owns roughly one third of the company’s shares. Marcos Antonio Molina dos Santos is the chairman of both companies, but had stated in April that a merger between the two companies does not make sense for now.
