Brazil's BRF, #Saudi fund set up poultry joint venture | Reuters

Brazil's BRF, Saudi fund set up poultry joint venture | Reuters

Brazilian chicken and pork processor BRF SA (BRFS3.SA) signed a memorandum of understanding with Saudi Arabia's sovereign fund to create a joint venture to make poultry products in the Middle Eastern country, it said on Thursday.

BRF said in a securities filing it will hold a 70% stake in the joint venture, while Saudi Arabia's Public Investment Fund, known as PIF, will have the remaining 30%. Shares rose by 3.2% to 24.60 reais on the news.

The MOU is non-binding and aims to create a company that will produce and sell fresh, frozen and processed poultry products. BRF refused to provide additional details about the move as it is in a quiet period ahead of a shareholder vote on Monday to decide on a follow-on share offering. read more

The Brazilian company said the joint venture will require a $350 million investment if it materializes.