São Paulo – Brazilian food company BRF will receive a capital injection of BRL 4.5 billion (about USD 889.67 million at the current rate) from its parent company, Marfrig, and Saudi sovereign fund subsidiary company SALIC. The company disclosed the information this Wednesday (31) through a material fact. The capital increase will occur through a new primary share offering.
According to information provided by BRF, the company received from the Saudi Agricultural and Livestock Investment Company (SALIC) a subscription commitment of up to 250 million new shares. Marfrig also committed to subscribing to 250 million shares of its subsidiary. With a value pegged at BRL 9 (about USD 1.78) per share, the investment amounts to BRL 4.5 billion (about USD 889.67 million).
BRF announced a future primary public offering of 500 million new shares to be registered with the Brazilian Securities and Exchange Commission (CVM). The company said the financial settlement of the offer will occur by December 31. The company’s shares are listed under the “Novo Mercado” segment of B3, the Brazilian stock exchange.
SALIC stated it is eager to invest in Brazil on several occasions and has already pledged commitments to the local productive sector. The fund owns around 30% of the Minerva meatpacking company. With the investment in BRF, the Saudis would increase their stake to 16% of the company.
Translated by Elúsio Brasileiro
