Reports that Brazilian meat company Sadia is looking to raise funds could be linked to a possible move to acquire local peer Perdigao, one analyst told just-food.
According to reports, Brazilian meat company Sadia is mulling issuing new shares to reinforce its cash position. A report in by local newspaper O Estado de Sao Paulo said Sadia chairman Luiz Fernando Furlan indicated that the company is also interested in raising a loan from the Brazilian Development Bank, BNDES.
One New York-based analyst told just-food that Sadia could be looking to raise finance to fund a potential tie-up with Perdigao.
“There has been speculation on a potential acquisition of, or merger with, Perdigao. Both companies have seen quarterly profits drop because of foreign exchange and exposure to derivatives. These factors could have contributed to any move to raise funds,” the analyst said.
In 2008, Sadia posted a net loss of BRL2.5bn (US$1.1bn), down from a profit of BRL768m the previous year. The company’s results were hit by a foreign exchange futures positions loss.
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The company was unavailable for comment as just-food went to press.