Minerva, Shareholders Raising Up to $266 Million in Share
Minerva SA (BEEF3) and the Vilela de Queiroz family that controls the Brazilian meatpacker are raising as much as 556.9 million reais ($266 million) in a share sale to fund its expansion and shore up finances after debt surged.
The Barretos, Brazil-based beef producer and its shareholders are selling as many as 50.6 million shares at 11 reais apiece, according to information on the Brazilian securities regulator’s website today. Shares were sold at a 4.3% discount from today’s closing price of 11.50 reais.
Minerva, Brazil’s third-largest beef producer by market value, is seeking to expand its beef slaughtering capacity in Brazil, Uruguay, Paraguay and Colombia and boost output of ready-to-eat meat products, it said Nov. 21. About 65 percent of proceeds of the sale will be used to “reinforce the cash position,” it said.
The company’s total debt jumped 81 percent in two years to 2.61 billion reais at the end of the third quarter, according to data compiled by Bloomberg.
Minerva was founded in 1992 and is controlled by VDQ Holding SA, a company owned by the Vilela de Queiroz family. Minerva owns 12 plants in Brazil, Paraguay and Uruguay with capacity to slaughter 11,480 cattle a day.
Before Minerva, companies raised 10.8 billion reais in share sales in Brazil this year, according to data on the securities regulator’s website. That compares with 19.2 billion reais in 2011.
The new shares start trading Nov. 30. Banco BTG Pactual SA is coordinating the sale along with Credit Suisse Group AG, HSBC Holdings Plc, Morgan Stanley and Banco do Espirito Santo SA.
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