Minerva proposes capital increase by up to $338 million
Shareholders to vote on April 29
9 April 2025
1 minute read
By: Minerva, South America's largest beef exporter, said on Monday its board proposed to shareholders a capital increase by up to 2 billion reais ($338.1 million), with the issuance of shares at a near 20% discount from their current prices, reported Reuters.
In a securities filing, Brazil's Minerva said shareholders Salic International Investment Company and VDQ Holdings have committed to buy shares in the deal to guarantee a minimum 1 billion real capital increase.
Through the deal, which will be voted by shareholders in a meeting called for April 29, Minerva will privately issue some 387 million shares at 5.17 reais each, representing a 19.7% discount from the closing level on Monday.
The firm said it will use the funds to strengthen its capital structure and liquidity position, providing an increase in cash and allowing a reduction in debt.
Analysts have raised concerns for months about Minerva's rising debt following acquisitions of some assets from rival Marfrig.
Every two shares purchased in the deal will give shareholders the right to one subscription bonus, which could be converted in a share within three years, Minerva added.
($1 = 5.9150 reais)
