Key shareholders in Brazil’s BRF present board candidates, seek new chairman

SAO PAULO (Reuters) – Two pension funds that are the largest shareholders in Brazilian food processor BRF SA (BRFS3.SA) presented on Saturday a list of ten candidates for seats to the company’s board that excludes the current chairman, according to a joint statement.

FILE PHOTO: Meatpacking company BRF SA’s logo, which is one of the biggest food companies in the world, is pictured in Lucas do Rio Verde, Mato Grosso state, Brazil, July 27, 2017. REUTERS/Nacho Doce

Pension funds Previ and Petros, which represent employees of state-controlled companies Banco do Brasil SA and Petroleo Brasileiro SA and hold a joint 22 percent stake in the food processor, a major producer of pork and chicken products.

The funds are proposing Augusto da Cruz Filho as BRF’s new chairman, replacing retail tycoon Abilio Diniz.

The overhaul in BRF’s board and management was requested by the funds after the company last year reported its worst results ever, posting a 1.2 billion reais ($371 million) loss.

Among the 10 candidates supported by the funds is Luiz Fernando Furlan, a former Brazil’s Development and Foreign Trade minister which is a member of one of the families that founded Sadia, one of the two companies in the merger that created BRF SA almost ten years ago.

There is no candidate on the list representing investment firm Tarpon Investimentos SA (TRPN3.SA), an ally of Diniz which holds a 7.3 percent stake in BRF.

“We are presenting a group of experienced executives to lead BRF’s recovery,” said Petros director Daniel Lima.

BRF’s board will meet on Monday to discuss the funds’ request for a shareholder assembly to vote on a new board.

Reporting by Tatiana Bautzer, editing by G Crosse

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