BRF wants to sell $ 5 billion in assets in the second half

The food company BRF intends to sell 5 billion reais in badets in the second half of this year, in a "household brake" of the company involved in the scandal of the operation Carne Flesh of the federal police, and impacted by the export closure of poultry meat.

The company, owner of the Sadia and Perdigão brands, will sell its activities in Europe, Thailand and Argentina, concentrating its efforts in Brazil, Asia and the Muslim market.

In Brazil, "adjustments" in their factories should result in a 5% reduction in the company's workforce or around 4,000 workers, if information is used on the total number employees available on the company website. "It's a tight tidy that looks at what's absolutely fundamental, namely improving capital structure and reducing leverage," said Pedro Parente, general manager of BRF, at the time of writing. a teleconference with reporters on the sale of badets.

The goal is to reduce the debt of BRF which ended in March at 14 billion reais. The Ebitda-adjusted net debt ratio is expected to end 4.35 times in 2018 compared to 4.44 times at the end of the first quarter. BRF expects debt to be less than three times in 2019.

The R $ 5 billion to be raised also include the sale of real estate and non-operating badets and minority stakes in corporations, as well as a securitization of

A few hours earlier, company executives had informed badysts and investors that BRF was only going to reap 500 million reais from the sale of Non-strategic badets, indicating that a decision had not yet been made on major divestments. Shares of the company closed at a maximum of 0.5%, to 18 reais, while Ibovespa recorded a rise of 1.39%.

According to Parente, the badets in Europe, Thailand and Argentina will be the most important part of the amount of resources to be mobilized by BRF in the coming months. He denied that the company will sell the discounted badets when it will be asked what is the relatively short period of time to dispose of the common size of operations, which account for about 10% of the volumes sold by the company.

"We do not expect any rebates We are going to sell at the fair and at market value, our cash is large enough so that we do not make any hasty decisions," said Mr. Parente. Despite saying that the BRF sees good chances of selling the badets already in the second half of this year, Parente commented that the company has not yet hired banks to help sell the deals. "It's in the final stage of choice," he said.

After the prices of cereals used to feed slaughter animals rose sharply in 2016, the BRF was hit last year and this year by police investigations

Asked about the state current investigations and on the company's contacts with the authorities to reduce the uncertainty of investors on the company, Parente chose not to comment

FP operations led to a European embargo on Brazilian chicken exports this year. This year, China also adopted an anti-dumping measure that affected the sector's exports.

Regarding the sale of minority interests in companies, the world vice president, Lorival Nogueira Luz Junior, also declined the alternatives will be evaluated. "The BRF had up to the end of March 11.63 percent of the Minerva refrigerator."