"Food Security Deal In Saudi Arabia This Week"

The BRF site is located in Dourados, Mato Grosso do Sul, Brazil. Rafael Henrique took the photo. SOPA Images and LightRocket via Getty Images helped publish it.

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The agriculture fund in Saudi Arabia promised to put money in BRF's upcoming stock offers. BRF is a big meat company from Brazil.

The Saudi Agricultural and Livestock Investment Co. (Salic) has made a promise to buy 250 million shares from BRF. It's not a final agreement, as there's still a settlement planned for December 31st.

Marfrig Global Foods, BRF's biggest shareholder, has agreed to buy 250 million shares at a price of up to nine reais each. The transaction is worth 4.5bn reais ($922.8m).

BRF's shares rose after the announcement. Saudi Arabia's point of view is important.

Salic and Marfrig's investment promises made BRF's stock price increase by 16%.

Getting that support can improve the company's financial situation.

The announcement was significant for Saudi Arabia. Why? They want to make their food security stronger.

Salic was created in the early 2010s. They wanted to make sure everyone had enough food. They did this by making food products and keeping their prices stable.

Saudi Arabia's overall Vision 2030 strategic plan includes a focus on food security. The country aims to decrease its food imports. Investing in food is viewed as a means of diversifying the economy away from oil.

Salic has some of the ownership of Minerva Foods. They also invested in Australia with a co-owned venture.

Salic bought shares in LT Foods, which is a rice supplier in India. This happened in November.

BRF is known to officials in Saudi Arabia. They have two factories there and one opened recently. BRF works with a halal food company backed by PIF. Saudi Arabia buys a lot of chicken from BRF.

BRF has faced challenges. However, the company has overcome them. BRF continues to be successful. Overall, the company is doing well.

BRF had a bad year in 2022. They lost 3.1bn reais. Last year they made a profit of 437m reais. Their sales went up by 11%, but their profits went down by 16%. They owe a lot of money compared to how much they make. In 2022, their debt was 3.75 times their earnings.

BRF's revenues increased by 9% compared to the same quarter last year. Their gross profit is better and their net losses have gone down. However, they still had a loss of 1.02 billion reais - almost double than what analysts predicted. Their leverage is also higher than last year. BRF is planning to sell some of their non-core assets.

BRF made deals with Salic and Marfrig to improve their financial situation. Investors feel better, but they still want to see if BRF will sell things this year. BRF wants to stop selling pet food.

BRF made a statement. The statement refers to Salic. Salic is linked to a future public offering. It is linked to shares issued by the company. The offer is for the same amount offered to the public.

The price for each share should be less than nine reais. Salic has to get at least two-thirds of its agreement. These are the terms and conditions.

BRF said that the company's future public offering of shares will be 500 million. Marfrig committed to offering the full amount.

The company name is BRF. It is a global food company. It has headquarters in Brazil. Its products include meat, poultry, and processed foods. BRF has operations in over 140 countries. It has a diverse customer base. BRF values sustainability and animal welfare. The company employs over 90,000 people.

Marfrig Global Foods is a large meat processing company. It was founded in Brazil in 2000. The company processes beef, pork, lamb, and poultry. Marfrig operates in several countries including the United States, Brazil, Uruguay, and Argentina. The company is known for its sustainable practices and has received recognition for its efforts in protecting the environment and supporting local communities.