Meatpacker Minerva seeking $350m to pay debts or takeovers

Minerva has its sights set on either paying off debts or financing a takeover

Multi-species Brazilian meat processor Minerva SA is looking to raise $350m in capital a week after beleaguered giant JBS sold the firm many of its South American beef assets.

Minerva has put notes worth $350m up for sale, claiming it hoped to use the net proceeds to finance acquisitions or pay off existing company debt.

The notes were issued by the company’s subsidiary and debt issuing vehicle Minerva Luxembourg SA on 12 June 2017.

Minerva said in a bulletin to financial markets that only “qualified institutional investors” would be able to buy the notes it is offering.

Don’t cry for me Argentina

The company could not be reached to comment on why it was seeking to raise millions of dollars in capital.

On 6 June 2017, the world’s largest meatpacker JBS confirmed it had sold its beef operations in Argentina, Paraguay and Uruguay to three subsidiaries owned by Minerva: Pul Argentina SA, Frigomerc SA and Pulsa SA.

The acquisition is priced at $300m, although this is subject to adjustments that are equivalent to net working capital and long-term debt.

The sale of beef operations to its smaller rival Minerva signals a retreat in Argentina, one of the world’s top beef producers, for JBS.

The company said it wants to use the cash gained from the sale to “reduce its financial leverage”.

At the time of the deal, many speculated it would be used to help finance a record R$10.3bn ($3.1bn) corruption fine that JBS’ holding company, J&F Investimentos, has been ordered to pay. But a spokesman for JBS said none of the company’s assets would be sold to finance the fine.

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