Nearly nine years later, Abilio leaves BRF — at a loss | Business

After nearly nine years, Abilio Diniz is no longer a shareholder of BRF. The businessman also sold his 3.8% stake to Marfrig, but the R$ 898.9 million deal was only made public this week, in a document sent to the SEC.

Abilio’s departure ends a trajectory that started out promising but ended up melancholy. In addition to the financial problems at BRF, the entrepreneur lost money.

When he set up his position in BRF, between the end of 2012 and the beginning of 2013, the company’s shares were worth close to R$40. At the time, Peninsula funds invested more than R$1 billion in the owner of Sadia. Marfrig paid R$28.75 for Abilio’s shares.

The sale of Abilio shares to Marfrig was agreed on May 19, when Marcos Molina triggered the buying movement that culminated in a 31.66% position in BRF. The transaction, however, only took place in August, after the approval of the deal at Cade – the SEC determines that such deals must be disclosed within 30 days, which happened now.

Abilio Diniz was chairman of the board of BRF between 2013 and 2018 — Photo: Sergio Zacchi/Valor

Abilio can still alleviate the losses with the investment in BRF. In the contract between Marfrig and Aspen — one of the entrepreneur’s funds — there is a provision for an earn-out payment. The information caught the attention of Leandro Fontanesi, an analyst at Bradesco BBI who published a report on the matter.

In a sign that Abilio may bet on the merger between BRF and Marfrig in the short term — which seems more distant after Molina’s latest statements — the contract provides that the entrepreneur will be entitled to 50% of what exceeds R$ 28.75 . Today, BRF shares are worth R$21.35.

Interestingly, the earn-out will be calculated considering the average number of shares in the 90-day period that surrounds the next BRF shareholders’ meeting, in April — the term considers the 60 days prior to the AGM and the 30 days after. A corporate event before that would also precipitate the exercise of the additional payment.

At the meeting, recalls the Bradesco BBI analyst, BRF will elect a new board, which could mark the entry of Molina or names close to the businessman on the board. After this period, the earn-out right expires.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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