Brazilian food giant Sadia has remained silent on reports that it will either sell off some of its assets or seek a strategic partnership to shore-up debt.
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At the end of October, Sadia posted a net loss of BRL777.4m (US$366.9m) for the third quarter of the year due to the impact of foreign exchange derivatives held by the company.
At the time, the company said it has secured credit of BRL2.3bn to guarantee cash flow and cover liabilities. However, the group’s share price plummeted following the news and a lawsuit has been launched by US investors over the company’s risky derivatives exposure.
According to a report from O Estado de São Paulo, the company is on the look out for a partner, possibly a private equity fund, to purchase 15-20% of the group for BRL700-800m.
Rumours have also pointed to Nestlé as a possible buyer. However, a spokesperson for the Swiss company told just food that these reports were “inaccurate”.
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By GlobalDataSadia declined to comment on such “speculation” or its financial position when contacted by just-food today (28 November).
