Brazilian food giant, Qatar to buy Turkish poultry firm Banvit

BANDIRMA

Turkish poultry producer Banvit has signed a deal with Brazilian food processor BRF S.A. to sell a majority of its equity stake, the company said in a written statement to the Public Disclosure Platform (KAP) on Jan. 10.

The Brazilian company will buy 79.5 percent of Banvit’s total paid capital, according to the statement.

Under the deal, which preliminarily valued Banvit at 11.51 Turkish Liras ($3.07) per share, BRF will take a 60 percent stake in the joint venture, while the Qatar Investment Authority will take 40 percent in a deal that calculates Banvit’s enterprise value at $470 million.

“It’s a valuation we consider attractive,” BRF Vice President for Finance and Investor Relations Alexandre Borges said in an interview, as quoted by Reuters.

The deal is part of BRF’s move into the halal market, with Banvit integrating into OneFoods, a BRF subsidiary dedicated to halal food that began operations last week. The first phase of the deal involves the acquisition of 79.5 percent of Banvit, followed by a tender offer for the rest of the company, as reported by Reuters.

Banvit’s share was 12 percent higher at 9.85 early on Jan. 10 on Borsa Istanbul, Turkey’s main stock exchange, following the announcement of the deal, which is subject to approval by authorities.

Banvit said UniCredit/Yapı Kredi has been the exclusive financial advisory of the shareholders for the transaction and that Çiğdemtekin Dora Çakırca Arancı Law has been the main legal consultant. The company added in a press statement that Helix Management Consultancy has been the main strategic consultant for shareholders.

Esin Attorney Partnership and Baker McKenzie also said they advised BRF S.A., one of the biggest poultry producers in the world, on signing the transaction documents for the acquisition of the majority equity stake in Banvit, together with Qatar Holding LLC, an affiliate of the Qatar Investment Authority, which will acquire a minority stake in Banvit through its joint venture with BRF.

Banvit, operational since 1968, is the biggest poultry company in Turkey in terms of sales and is listed on Borsa Istanbul. Banvit is a pioneer food company with fully integrated production facilities, which performs its social responsibilities and is sensitive to public health and the environment.

BRF is one of the world’s largest food companies, with a portfolio of more than 30 brands that include Sadia, Perdigão, Qualy, Paty, Dánica, Bocatti and Confidence. Its products are marketed in more than 150 countries on five continents. BRF employs more than 105,000 employees and has 54 production units in seven countries (Argentina, Brazil, the United Arab Emirates, the Netherlands, Malaysia, the United Kingdom and Thailand) and exports its products to over 150 countries.