Vigor Jumps to Six-Month High on Itambe PurchaseJulia Leite
Vigor Alimentos SA, the Brazilian dairy-products maker spun off from JBS SA 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 index fell 14 percent in the same period.
Itambe has annual sales of about 2 billion reais, according to the company’s website.