Vigor Jumps to Six-Month High on Itambe Purchase

Vigor Alimentos SA (VIGR3), the Brazilian dairy-products maker spun off from JBS SA (JBSS3) in June, rose to a six-month high after buying a 50 percent stake in closely held Itambe Alimentos SA.

Shares gained 18 percent to 7.99 reais at the close of trading in Sao Paulo, the highest since Aug. 8. Trading volume was 6 times the three-month average, according to data compiled by Bloomberg.

Vigor acquired 50 percent of Itambe, a rival dairy producer, for 410 million reais ($208 million), the company said in a regulatory filing today. The purchase will help Vigor bolster its presence in the Brazilian states of Minas Gerais and Rio de Janeiro and in the northeast region, the company said in the filing.

Vigor has advanced 25 percent in the past year, while the benchmark Bovespa (IBOV) index fell 14 percent in the same period.

Itambe has annual sales of about 2 billion reais, according to the company’s website.

To contact the reporter on this story: Julia Leite in New York at jleite3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.