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.
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