|09 January, 2017

Brazilian firm, Qatar SWF to buy Turkish poultry firm in $470mln venture

BRF would take a 60 percent stake in the venture and the Qatar Investment Authority will take 40 percent

Image used for illustrative purpose. Notes from a seized haul of $7.16 million in counterfeit hundred-dollar bills are pictured in Battambang September 30,

Image used for illustrative purpose. Notes from a seized haul of $7.16 million in counterfeit hundred-dollar bills are pictured in Battambang September 30,

REUTERS/Andrew RC Marshall

SAO PAULO, Jan 9 (Reuters) - 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 percent stake in the venture and 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.

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 percent 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.

(Reporting by Paula Laier, writing by Brad Haynes; editing by Alistair Bell and Grant McCool) ((brad.c.haynes@tr.com; +55-11-5644-7725; Reuters Messaging: brad.c.haynes.thomsonreuters.com@reuters.net))

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