Adds particulars of Molina’s interview to native newspaper
SAO PAULO, Could 24 (Reuters) – Shares of Brazilian meatpackers BRF SA and Marfrig International Meals SA fell 3% and 5% respectively on Monday after beef producer Marfrig confirmed late on Friday it had purchased a 24% stake in poultry and pork processor BRF.
Marfrig’s controlling shareholder, Marcos Molina, informed newspaper Valor Economico he doesn’t intend to intervene with the administration of BRF and would stay a passive investor no less than till new elections to resume BRF’s board.
Marfrig’s surprising funding, price an estimated $800 million, in accordance with an individual conversant in the matter, could be financed with the corporate’s money technology this 12 months, Molina mentioned within the newspaper interview revealed on Monday.
Marfrig confirmed his revealed remarks.
“A big a part of the funding might be absorbed with the money technology over the second and third quarters,” Molina mentioned. He famous the corporate would wish roughly six months of money generated by U.S. unit Nationwide Beef, to pay for the stake.
Molina once more denied any intention to mix the companies: “There aren’t any plans. The operations want to remain centered.”
Relating to a potential BRF board seat, Molina mentioned he would consider whether or not to stay a passive investor or appoint a consultant in April 2022, when it might be renewed.
“We’re comfy with our funding. We didn’t enter an organization that may be a drawback,” he mentioned.
(Reporting by Ana Mano and Marcelo Rochabrun; Enhancing by Kirsten Donovan)
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