MMS Participacoes Ltda, the controlling shareholder of Brazilian meat processor Marfrig, will be allowed to sell a portion of the shares it owns in the business.
A report in Reuters citing a filing with Brazil's market regulator said MMS Participacoes, owned by Marfrig's chairman Marcos Molina, entered an agreement with BNDESPar, the investment arm of Brazil's development bank BNDES, to have the right to unlink 20%of the shares it owns in Marfrig.
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MMS owns 28% of Marfrig while BNDESPar holds a 20% stake.
In June, Marfrig entered an agreement to sell its European meat business, Moy Park, to fellow Brazil-based meat group JBS for around US$1.5bn. Prior to this it had been planning to push ahead with an IPO of Moy Park but said the deal deal will enable it to invest in growth opportunities it had identified, namely the expansion of its Keystone foodservice business in the US and Asia and beef exports from Brazil to Asia and the US, with the market expected to open "soon".
