June 1, 2009

Perdigao to vote off BRF share offer on June 19

Shareholders of Brazilian meat packer Perdigao SA will meet on June 19 to vote on a huge proposed share offer related to their company's merger with traditional rival Sadia SA.

In a statement Friday (May 29), Perdigao set June 19 for a shareholders meeting to ratify a management proposal to float 4 billion Brazilian reals (US$2.03 billion) in new shares for BRF Brasil Foods, the big new company that will result from the merger of Perdigao and Sadia.

Traditional rivals in meat packing and food processing, Perdigao and Sadia announced a merger on May 19. The merger will result in creation of BRF Brasil Foods, which will be reinforced by the offer of new shares. The combined company will have the equivalent of more than US$10 billion in annual billing, mostly in the Brazilian market but also through exports.

In its statement Friday, Perdigao said its own shareholders and Sadia shareholders will have preference in buying the new shares.

Sadia hasn't yet set a date for a shareholders meeting to ratify the BRF Brasil Foods share offer proposal.

Under terms of the May 19 accord, current Perdigao shareholders will hold a 68 percent stake in BRF Brasil Foods while Sadia shareholders will take a 32 percent stake.

Perdigao said Friday it is interested in attracting both domestic and overseas investors to the BRF Brasil Foods share offer.