Minerva stocks falls by over 6% with new share offer
Shares in Minerva Foods fell by 6.78%, to R$ 10.99 yesterday, in reaction to the announcement made late on Friday that the company will issue new shares to cut its debts. The news also contaminated shares in its competitor, Marfrig, which ended trading down by 4.29%, to R$ 11.58. According to market players, the slaughterhouse may also raise capital to pay down its highly leveraged position.
At the end of the third quarter, the ratio of net debt to EBITDA (earnings before interest, taxes, depreciation and amortization) was 3.7 times for Minerva, the same level as Marfrig at the end of June. In a report, analyst Alexandre Miguel, of Itaú BBA, stresses that Minerva's shares will continue to suffer in the short term because of their increased volume and the dilution of minority shareholdings.
Information provided by Valor Econômico