IEG Vu is part of the Business Intelligence Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. Please do not redistribute without permission.

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

Time to sell at Marfrig

Marfrig is now the most visible example of how uncontrolled growth can disrupt a company. Over the past five years the group has bought 22 companies, which multiplied its turnover ten-fold and made it the third-largest meat processor in the world, making former butcher Marcos Molina one of the most powerful businessmen in Brazil.

The problem for Molina and Marfrig is that the price to pay for all this growth has been very high. Molina is R$ 7.8 billion in debt. Investors, spooked by the bill, have fled. Today, Marfrig is worth 40% less than on the day of its IPO in 2007.

So, Molina has decided that a reversal was required: as shown in a document obtained exclusively by Brazilian business magazine Exame, he hired the investment bank Itaú BBA to sell 40% of Seara to investment funds. He wants to raise R$ 2 billion and at the end of the process pay down Marfrig’s debt.

Information provided by Exame
 

Advertisement

Topics

What to read next

Advertisement
UsernamePublicRestriction

Register

CO193203

Ask The Analyst

Please fill in the form below to send over your enquiry or check the Ask The Analyst Page to find out more about the service

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel