BRF: Greenlight for Molina and Salik | a job

Capital increase plan BRF, without the need for an acquisition attempt to extrapolate a toxic pill. At an extraordinary meeting, the majority of shareholders present voted in favor of continuing to issue 500 million shares at a maximum price of R$9. The initial stock offering should inject R$4.5 billion into the company, giving more ground to Marcos Molina’s company and announcing the entry of the Saudi Salik fund.

• Salic brings Molina closer to taking control of BRF – but she defies the merger with Marfrig

Shareholders agreed to forfeit the toxic pill, which is triggered when an investor exceeds 33.33% of BRF’s share capital. a marvrig It already owns 33.27% owner Sadia and Perdigão and, with the offer, will reach 38.7%. Failure to activate the OPA was a condition of the capitalization proposal.

This means that with the new capital in cash, the BRF could have a controller. Molina was already exercising this role as the majority, but with the exclusion of the substance that defines the poisonous pill, there was no longer a percentage limitation for the businessman and his slaughterhouse.

According to the minutes of the company’s meeting, 76.58% of shareholders voted in favor of the capital increase and 32.7% voted in favor of waiving the OPA commitment. About 15% voted against the two stories, and the rest abstained.

• Marfrig and Salic must contribute up to R$4.5 billion to the new BRF bid

Marfrig and Salic intend to buy up to 250 million shares, taking half of the offer each. After the offer, 16% of BRF is to be held by the Saudis.

The main reason for capital increase is the debt of the company. BRF ended the first quarter with net debt of R$15.2 billion and leverage of 3.35x – which analysts consider to be already high. The company has begun selling assets, but it won’t close the account with mergers and acquisitions alone.

• In egg mergers and acquisitions, Granja Faria buys Katayama and becomes a leader

Since he began building a position at BRF, the market has speculated about a future merger with Marfrig, which would be Molina’s big long-term plan (although it was publicly rejected by the businessman and the company). However, the Arabs have an agreement with the Vilela de Queiroz family that controls Minerva, which prevents the fund from investing in any beef company in the world, unless there is a mutual agreement – which hardly happens in the face of a direct competitor. Otherwise, Salic loses her political rights to Minerva.