August 27, 2009

Brazil's second-largest beef exporter, Bertin, may sell stock in an initial public offering as it looks to raise cash and fund future investments.

According to Brazilian daily Valor Economico, Bertin, which is also Brazil's largest leather exporter, expects sales in 2009 to jump 25 percent to about 9.4 billion reais (US$5.4 billion), but in order to reach that target it needs to "improve its capital structure," quoting company director Fernando Falco.

The company has been approached by banks to structure medium- and long-term funding deals and may consider bonds in the local or international capital markets, he said.

Falco said they are talking with financial institutions looking for a market boost to prepare the company for an initial offering.

Bertin has given up plans for a merger with rival Marfrig, he added, deciding instead to focus on organic expansion.

US$1 = BRL1.86 (August 27)