Watched by BNDES, new CEO of Marfrig has two years to reverse cash crisis
On December 4 last year, Sergio Rial closed the book on shares in Marfrig at the Merrill Lynch office in New York. He will only take over as company president in early 2014, but he has already really taken over the reins. Rial was observed by Caio Mello, head of the capitals market at Brazil's state-owned development bank, BNDES.
The scene well illustrated the times Marfrig Group, one of the world's largest meat companies, is experiencing. Under the watchful eye of the BNDES, which has been endorsing all its strategic decisions, Marfrig has made its management professional and raised R$ 2.3 billion on the market. With this money, which solves its short-term debt problems over the next two years, the company gained some respite from creditors and investors, who had been punishing the company.
Since its peak in January 2010, the market value of Marfrig, founded by entrepreneur Marcos Molina, has fallen from R$ 8.2 billion to R$ 4.8 billion. Before raising funds, the company's total debt was R$ 12 billion, in the third quarter of 2012, a result of 42 acquisitions made over five years that had not generated the synergies expected.
Information provided by O Estado de S. Paulo