January 17, 2020


Brazilian beefpacker Minerva SA announces US$327 million share offering


The company's plans to sell 80 million new shares in the new offering, which could raise up to 1.368 billion BRL (~$327 million) and push Minerva's share prices up with hopes that the new offering will boost the company's debt profile, reported Reuters.


Proceeds from the new offering will be allocated towards settling debt obligations. 15 million existing Minerva shares owned by VDQ Holdings (which has a 29.16% in Minerva) will also be sold.


The beefpacker company saw its shares rise 4.5% at 15.05 BRL (~US$3.60;1 BRL = US$0.24). Lucror Analytics, a credit research firm upgraded Minerva's bonds to 'buy'.


Soummo Mukherjee from Lucror said he expects Minerva's net drop to fall 22%, with improvement in its debt rating.

Minerva will price its share offering on January 23, 2020.


Meatpackers in Brazil are benefitting from boosted meat exports to China, as the latter is currently managing an Africans swine fever outbreak. China has approved more overseas meat import sources to supplement dwindling supplies caused by the outbreak.


Minerva is one of the top beef producers and exporters in the South America region. It operates 25 cattle slaughtering facilities in Brazil, Argentina, Paraguay, Uruguay and Colombia, with a 26,380 head of cattle daily capacity. The company sells processed, chilled and frozen meat, in addition to live cattle exports.


The company's shares are up 17.2% in 2020.


-      Reuters