Brazil’s Marfrig Opens $805 Million Share Sale as State Exits
Brazil’s Marfrig Opens $805 Million Share Sale as State Exits
(Bloomberg) -- Marfrig Global Foods SA announced an equity offering that will allow Brazilian development bank BNDES to sell its stake in the world’s second-largest beef producer.
BNDESPar, the bank’s investment arm, plans to sell about 209.6 million shares, which is all of its 33.74% stake, Marfrig said in a regulatory filing. The company will sell about 90 million shares.
The sale could raise about 3.33 billion reais ($805 million), based on Friday’s closing price of 11.10 reais, according to the filing. Pricing is expected on Dec. 17, followed by the shares’ debut two days later.
Marfrig’s founder and biggest shareholder, Marcos Molina, won’t divest and said he’s willing to exercise his priority rights in the sale, meaning he won’t be diluted.
The BNDES divestment is part of President Jair Bolsonaro’s plan to shrink the state’s role in the economy. The development bank also plans to sell almost half of its stake in meat giant JBS SA, people familiar with the matter have said.
Banco Santander Brasil SA, JPMorgan, Banco Bradesco BBI and BB-Banco de Investimentos SA are running the deal.
Marfrig boosted its bet on the U.S. market in November, paying $849 million to increase its stake in Kansas City-based National Beef Inc.
To contact the reporter on this story: Felipe Marques in Sao Paulo at fmarques10@bloomberg.net
To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Tony Czuczka, Steve Geimann
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