Media reports, originating in Brazilian newspaper Valor and further investigated by news agency Reuters, reported market regulator CVM is accusing Molina of the “misuse of privileged information” involving Marfrig shares before a filing in April 2018.
The reports said Molina is in talks with the regulator on a potential settlement,
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CVM has accused Molina of insider trading over Marfrig’s acquisition of a majority stake in National Beef announced in April 2018.
According to the Valor report, CVM found that Molina bought shares in Marfrig prior to the announcement of that deal with Marfrig’s shares rising nearly 20% after the transaction was announced.
However, in a statement sent to Reuters, Marfrig said Molina “fulfilled his fiduciary duties towards Marfrig” by not buying or selling any of the company’s shares between March 6, 2018, and April 9, 2018, adding that “there was no irregular operation.”
Just Food has contacted Marfrig and CVM seeking clarification of the matters reported.
On Friday (21 May), Marfrig announced it had acquired a 24.23% interest in fellow Brazilian meat group BRF. Marfrig insisted its aims through the transaction are to diversify “investments in a segment that has complementarities with its sector of activity”.
