PIF unit backs Brazilian beef exporter’s capital top-up

Salic International Investment Company, a subsidiary of Saudi Arabia’s Public Investment Fund, and Brazil’s VDQ Holdings have committed to a rights issue by Minerva, a beef exporter seeking to raise new capital.

As part of the deal, the two companies, which own stakes in Minerva, have guaranteed a minimum 1 billion reais ($169 million) to the capital increase, Minerva said in a filing on the local stock exchange on Monday.

The Minerva board has proposed a capital increase of up to 2 billion reais by issuing shares at 5.17 reais. The price is a 20 percent discount from Monday’s closing price, Reuters reported.

Minerva took an sizeable new debt last year when it purchased Marfrig, a competitor with facilities across Latin America.

Every two shares purchased will give shareholders the right to one subscription bonus, which could be converted into a share within three years.

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Shareholders will vote on the capital hike deal in a meeting on April 29.

The new funds will boost Minerva’s liquidity position, allowing debt reduction. Salic upped its stake in Minerva to 34 percent from 25.5 percent in 2020.

In July 2023 Salic acquired 180 million equity shares, or 11 percent, in Brazilian food processor BRF for SAR1.3 billion ($339 million).

In the same year, it acquired a 42 percent stake in Naqua, Saudi Arabia’s largest aquaculture company.