The Saudi Agricultural and Livestock Investment Co. (SALIC) has purchased 180 million shares of Brazil-based meat and poultry company BRF.
Earlier this month, BRF announced that it would offer 600 million shares in the company, which trades on the Sao Paulo Stock Exchange.
In an announcement to the market, which was published on the BRF investor relations webpage on July 19, SALIC informed the company that it had purchased 180 million of those shares, which amounts to about 10.7% of the total outstanding shares. The total purchase price is valued at SAR1.27 billion (US$340 million).
In a press release, SALIC stated that this investment reflects its ongoing expansion to achieve its global and local food security strategic mandates, which stems from the Saudi Kingdom 2023 vision to support long-term national development and sustain the supply of the targeted essential food commodity.
SALIC also stated that in investing in the poultry sector, it further expands its collaboration with global players to gain access to the source origin of animal protein, and delivers on its food security mandate on both local and international levels. The purchase of BRF shares was also appealing to SALIC, as BRF is one of the world’s largest producers of halal poultry products.
Prior to this transaction, SALIC also invested in Minerva Foods, a Brazil-based meat producer, and Naqua, a Saudi-based aquaculture company.
The BRF announcement to the market pointed out that SALIC, as well as another investor, BlackRock Inc., informed the company they had no intenion of changing the company’s control or management structure.
BRF, formerly Brasil Foods, formed with the association of Brazilian brands Sadia and Perdiagao.
