Advanced Theory & Practice of Bonds

Recognized under IBF-FTS | 7-8 June 2022 | 12 CPD Hours

Comprehensive 2-day course on bonds designed for private bankers, wealth managers and advisors.

Brazil’s beef producer Marfrig Global Foods SA bought a 24% stake in the world’s largest poultry exporter BRF SA for about $800mn, becoming its major shareholder, with the aim of diversifying its investments. This comes after the two companies failed at merger talks almost two years ago. Marfig specified that its investment is passive, and that it will not have any representation on BRF’s board. The diversification takes place “in a segment which complements the sector where it does business.” The strong consumer demand at its North American division and relatively low cattle prices enabled Mafirg to buy the large chunk of its larger competitors shares, which bolstered its stock price in comparison to BRF, who has experienced tightened margins on the back of its reliance on Brazil. BRF’s shares gained more than 16% when the transaction was announced, whilst Mafrig shares fell about 3%. The advisor on the deal was JPMorgan Chase & Co.

Marfrig’s USD bonds were stable. Its 6.625% 2029s were at 112.46, yielding 3.46%.

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