By Ana Mano
SAO PAULO, Nov 30 (Reuters) – Brazilian food processor BRF BRFS3.SA wants to persuade the Qatar Investment Authority (QIA) to remain a partner in TBQ Foods and maintain their 40% stake in the company, according to a BRF executive.
In a brief telephone interview on Tuesday, BRF Chief Financial Officer Carlos Moura said a put option for QIA’s stake in TBQ would make BRF have to pay about 468 million reais ($83.80 million) for the stake, based on third-quarter financial information. BRF currently owns 60% of TBQ.
“It is a privilege for a company to have a sovereign investment fund as a partner,” Moura said.
“They are excellent associates and have been helping us to expand the company,” Moura noted, referring to Banvit, a leading chicken meat producer based in Turkey which is controlled by TBQ through a 91% stake.
The executive said that BRF has enough cash on hand to pay for the stake if QIA decides to quit the investment, with minimum impact on debt metrics.
He declined to discuss whether QIA would agree with keeping a smaller stake in TBQ or any other arrangement as the details of the ongoing negotiations are confidential.
In a securities filing earlier in the day, BRF said QIA agreed to extend the deadline to eventually exercise the put option related to TBQ to December 15.
($1 = 5.5850 reais)
(Reporting by Ana Mano; Editing by David Gregorio)
(([email protected]; Tel: +55-11-5644-7704; Mob: +55-119-4470-4529; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com