Meatpacker Hacks Equity Offering

Marfrig has updated its plans to issue shares and has made some changes that dramatically reduce the amount of proceeds it stands to cull from the sale. The Brazilian meatpacker now plans to issue 60.8m shares in its base offering, with the option to increase the deal by a 9.1m share hot issue, and a 12.2m share greenshoe. In total the, deal could yield proceeds of BRL1.6bn if priced in the BRL20.00 area. The previous proposal involved a sale of a total of 232m shares plus 34.8m hot issue shares and 46.4m greenshoe shares, according to the original material fact on the deal. That could have yielded the company BRL6.3bn at the BRL20.00 level. The timing of the offering has also been pushed back by less than a week, and is now scheduled for the second week of November. The deal is being led by Bradesco BBI, with Credit Suisse and Itau BBA as joint leads.