Sao Paulo | Reuters – Brazilian meat company Minerva SA plans an initial public offering in Santiago of its units outside Brazil as a way to reduce its debt, according to a securities filing on Tuesday.
After a capital increase at its Chilean subsidiary Athena Food, Minerva said it will gather its operations in Paraguay, Uruguay and Colombia under Athena and list them in Chile.
Minerva said its industrial units outside Brazil produced total gross revenues of 1.581 billion reais ($421.39 million), equivalent to 40 percent of the company’s total gross revenue.
Revenues outside Brazil more than doubled from a year earlier as Paraguayan exports to Russia increased following a Russian ban on Brazilian beef and pork imports, Minerva said.
The IPO should take place within 12 months, the company said.
Minerva reported on Tuesday a net loss of 926 million reais in the second quarter, compared with the 55.6 million reais loss it had year earlier.
In June last year, Minerva acquired JBS SA’s units in Paraguay, Uruguay and Argentina for $300 million, after founders of the world’s largest meat processor admitted to paying bribes to Brazilian politicians. ($1=3.7519 reais)
– Additional reporting by Anthony Boadle.