The sensitive math that will define the beginning of the Diniz era at BRF
Abilio Diniz's election to the presidency of the board of food company BRF is seen as virtually certain in the company. But the sensitive math behind this likely victory indicates that he may still face some delicate moments ahead as he runs BRF and Pão de Açúcar Group (GPA).
The higher the percentage of votes in favor of Diniz, the stronger he will be in both companies, and vice versa. He has secured the votes from the Bank of Brazil pension fund, Previ, and asset management company, Tarpon, which initiated the move for change in the management of the food giant and invited Diniz to run. In total, about 25% of the capital backs him, as Previ has 12.2%, Tarpon, 8% and he himself a little over 3%.
Any votes against the appointment of Diniz to the board of BRF will make his situation in the company delicate. It will indicate a lack of consensus in the decision and resistance to his name - even if he wins a majority. It would be unheard of in the history of the company that came about through the merger of Sadia and Perdigão. Not even after the rivals - with such different cultures - came together was there a public disagreement between the partners.
Valor has learned that GPA last year bought R$ 980 million worth of BRF products - 3.5% of BRF's net revenue in 2012, of R$ 28.5 billion.
Information provided by Valor Econômico