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04-06-23

Saudi Agricultural Investment Company, Marfrig Global Foods to Invest in BRF

(MENAFN) Saudi Agricultural and Livestock Investment Company (SALIC), owned by the Kingdom's sovereign wealth fund, and South American firm Marfrig Global Foods SA have announced their commitment to purchasing shares in a potential new offering by BRF SA, Brazil's largest poultry producer. According to a filing by BRF, SALIC has offered to subscribe to 50 percent of the total offer, equivalent to 500 million new shares. Marfrig Global Foods SA, which already owns a 33 percent stake in BRF, has pledged to acquire the remaining 250 million shares.

The proposed transaction dictates that the offer must be priced at a maximum of 9 reais (USD1.8) per share, representing a 23.8 percent premium over BRF's closing price of 7.27 reais on Tuesday. BRF has disclosed that its board of directors has already approved the engagement of a financial adviser to assess the move. The news of the potential offering has had a positive impact on BRF's shares, which surged by up to 15.7 percent, making it the top gainer on Brazil's benchmark stock index, Bovespa. Additionally, Marfrig's stock rose by approximately 5 percent.

For the Kingdom of Saudi Arabia, investing in BRF aligns with its efforts to strengthen food security and play a significant role in the global agricultural and livestock supply. Given Saudi Arabia's substantial demand for Brazilian meat products, such investments hold strategic significance. Furthermore, BRF and SALIC, owned by the Public Investment Fund (PIF), previously signed a memorandum of understanding to establish a joint venture focused on chicken production in Saudi Arabia, further enhancing their collaboration in the poultry sector.
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