Brazil’s BRF says JP Morgan bought 7.15% equity stake – CVM filing

RIO DE JANEIRO, BRAZIL – (REUTERS) Brazilian pork and poultry processor BRF SA said JPMorgan Chase & Co’s controlling entities reached a “synthetic exposure” of 58.1 million common shares in the firm through derivatives transactions on May 20, representing 7.15% of BRF’s capital stock.

In a securities filing late on Tuesday, BRF said the derivative transactions had the exclusive motivation of supporting transactions with clients. JPMorgan Chase & Co is Marfrig’s financial advisor in the acquisition of BRF shares announced last week. JPMorgan does not intend to exercise voting rights granted to the holders of the shares.

Last week, Brazilian beef producer Marfrig Global Foods SA spent around US$800 million to buy almost a quarter of BRF SA’ outstanding shares.

After the surprise move, Marfrig said it does not have the intention to merge the two businesses, which will continue to be operated separately.