BRF SA (BRFS) Drops as Watchdog Postpones Merger Plan Anew

BRF S.A. (NYSE:BRFS) is one of the stocks that bleed heavily.

BRF extended losses to a second day on Monday, dropping 5.64 percent to close at $3.68 apiece as investors took path from a minority shareholder’s official exit from the company and another round of delay in its proposed merger with Marfrig.

On Monday, minority shareholder Previ—a pension fund based in Brazil- said that it sold its stake in BRF S.A. (NYSE:BRFS) for $340.31 million to mitigate risks from the ongoing merger between the latter and Marfrig.

This followed the Brazilian securities regulator’s second time to postpone the voting anew, following the receipt of new requests to postpone the meeting.

It can be recalled that BRF S.A. (NYSE:BRFS) originally scheduled a shareholder meeting on June 18 to vote on its planned merger with Marfrig and adopt the new name, MBRF Global Foods Company.

A bird’s-eye view of a poultry farm, its white and black feathered chickens sprawled across the farm.

The proposed merger has already gained the approval of the antitrust authority in Brazil.

Marfrig is the majority stakeholder of BRF S.A. (NYSE:BRFS), with both firms sharing the same chairman.

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Disclosure: None. This article is originally published at Insider Monkey.