Marfrig Launches Follow-on

Brazil’s Marfrig has initiated investor meetings ahead of an equity follow-on, targeting BRL1.3bn ($634m). The transaction is expected to price December 4. The meatpacker plans to sell 105m primary shares, which would mean a BRL1.31bn size based on Monday’s BRL10.86 closing price, including a 15% greenshoe. A 20% hot issue is also available. Controller MMS and 13% holder BNDESPar are expected to exercise their rights in the offering. Marfrig plans to use proceeds to repay debt and to strengthen its capital structure. Bank of America Merrill Lynch, Bradesco, Itau, Banco do Brasil, Deutsche Bank and Santander are managing the sale.