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Reuters – Brazil Meatpacker May Sell Stake to Cut Debt

Marfrig, Brazil’s No. 2 meat producer, is considering selling a stake in a bid to rein in debt, Bloomberg reported on Friday, saying potential bidders could include rival Tyson Foods Inc. and buyout firm Blackstone Group. Marfrig expects to raise 2 billion reais ($989 million) through the sale of a stake in its holding company or in some of its units, according to the report. The company hired Banco Itaú BBA to oversee the transaction, the report added.

 

 

(Reuters) – Marfrig, Brazil’s No. 2 meat producer, is considering selling a stake in a bid to rein in debt, Bloomberg reported on Friday, saying potential bidders could include rival Tyson Foods Inc and buyout firm Blackstone Group LP.

 

Marfrig expects to raise 2 billion reais ($989 million) through the sale of a stake in its holding company or in some of its units, according to the report. The company hired Banco Itaú BBA to oversee the transaction, the report added.

 

According to Bloomberg, which cited sources with direct knowledge of the talks, other potential suitors could include the private equity units of JPMorgan Chase & Co and Brazil’s Banco Bradesco.

 

Marfrig, a meatpacker and also a producer of frozen dishes, chicken nuggets and other processed foods, is struggling to cut debt after making 20 acquisitions over five years to compete with bigger rival Brasil Foods, the report added.

 

A media office representative said the company does not comment on “market speculation.” Calls to JPMorgan’s and Bradesco’s São Paulo offices were not immediately answered. Efforts to reach Tyson were unsuccessful.

 

A spokesman for Blackstone in New York was immediately unavailable for comment. Itaú BBA will not comment on the report, a spokesman said by phone.