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Marfrig may have difficulties selling part of Seara Foods

Selling off part of Seara Foods, however, may be somewhat complicated, firstly, because it is not exactly cheap. The ratio between the estimated value of the company and its cash flow is equivalent to that of Brazil Foods, a company twice as profitable as Seara.

Analysts estimate it is 25% over-valued because of this difference in profit margin. Private equity funds contacted by Exame magazine said that R$ 2 billion is too high a value to be paid for a minority stake - they may require a larger share of the company, and it is not yet clear that Molina is willing to compromise.

Contacted by Exame, Molina did not confirm that he is selling the stake in Seara. "The restructuring of our business and the recent sale of assets will leave us in a comfortable position. There is no need to sell anything," he said.

Information provided by Exame

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