Brazilian food processor BRF SA and Qatar’s sovereign wealth fund agreed to buy the operations of Turkish poultry producer Banvit in a joint venture, BRF said in a securities filing on Monday.
BRF said it would take a 60 per cent stake in the venture and the Qatar Investment Authority will take 40 per cent in a deal that calculates Banvit’s enterprise value at $470m.
“It’s a valuation we consider attractive,” BRF Vice President for Finance and Investor Relations Alexandre Borges, said in an interview.
The deal is part of BRF’s move into the halal market, with Banvit being integrated into OneFoods, a BRF subsidiary dedicated to halal food that began operations last week.
The first phase of the deal involves acquiring 79.5 per cent of Turkish market leader Banvit, followed by a tender offer for the rest of the company.
“We can use our own cash, we’ve got the cash for that, or we could use a different alternative,” Borges said, explaining that the money could be raised through OneFoods