Sale of Turkey's Largest Poultry Producer Is Delayed, but Not DeadBy and
Shares of Banvit rose as much as 8.7 percent on statement
A new closing date for the deal will be announced Friday
Documents and some preconditions for the sale won’t be ready in time for Banvit’s annual general meeting on Thursday, Banvit said in a public filing late Wednesday. The companies are working to complete the process as soon as possible and a new closing date for the deal will be announced on Friday, it said.
The stock of Bandirma, Turkey-based Banvit jumped as much as 8.7 percent in Istanbul, the most since Jan. 10 and was trading 7.2 percent higher as of 12:04 p.m. The shares had lost 11 percent in the three days to Wednesday on concerns that the deal may not close.
“The worry whether the takeover deal would not be signed off weighed on the shares earlier this week,” said Irem Okutgen, an analyst at Istanbul-based Garanti Securities. “The statement signals it is only postponed and there are not bigger problems as feared.”
BRF, Brazil’s biggest food company, and the QIA in January formed a joint venture to buy Banvit for $470 million, including $130 million in net debt. BRF, which will hold 60 percent of the joint venture, said the purchase will help it expand in in the Middle East’s halal markets. The agreement also allows the QIA to swap its share in Banvit for a stake in One Foods, the Dubai-based halal food unit of BRF.