September 23, 2009
Marfrig leases more processing plants and may sell stocks
Marfrig Alimentos SA, the world's fourth-largest meatpacker, will lease 11 beef processing plants in Brazil to boost capacity by 41 percent while also filing to sell shares.
The Sao Paulo-based company filed to sell as much as BRL4.08 billion (US$2.3 billion) worth of shares. The money will be used to fund expansion, and Marfrig's board has authorised hiring a Banco Bradesco SA unit to manage the sale of as many as 232 million voting shares.
Marfrig also said units leased from Brazilian meatpackers Frigorificos Margen SA and Mercosul SA will boost global cattle slaughtering capacity by 8,800 animals per day to 30,150 per day.
JBS SA has recently agreed to buy a controlling stake in Brazilian meatpacker Bertin SA, raising its cattle slaughtering capacity to about 90,000 head per day from about 74,000. The purchase followed Marfrig's failure in buying Bertin earlier this year.
