BARRETOS, Brazil, Aug. 6 /PRNewswire-FirstCall/ -- Minerva S.A.
(BOVESPA: BEEF3; Bloomberg: BEEF3.BZ; Reuters: BEEF3.SA), one of the market
leaders in Brazil in the production and sale of beef, leather and live cattle
exports, informs its shareholders and the market in general that it acquired
today a controlling interest in Friasa S.A., a Paraguayan company. Friasa
leases a meatpacking plant located in the city of Asuncion Paraguay, with
slaughter capacity of 700 head/day. Minerva paid US$4 million to acquire
shares representing a 70% interest in the equity of Friasa. The transaction
agreement also provides for the lease by Friasa of the meatpacking plant for a
period of five years, which may be renewed for an equal period.
The acquisition marks the start of Minerva's international expansion in
the Mercosur trade bloc, and is part of the Company's strategy of geographical
diversification and insertion in new markets. Paraguay, currently the world's
8th largest beef exporter, has a livestock of 11 million heads of cattle and
offers excellent potential for improvements in productivity (output rate
currently at 14%) and sanitary status, with the country recently recognized by
the World Organization for Animal Health (OIE) as free of foot-and-mouth
disease with vaccination. In addition to exporting to destinations such as
Russia, South Africa, Vietnam, Israel, Hong Kong, amongst others, the country
is also qualified to export to the important Chilean market, where it holds
55% market share. Advanced negotiations are also underway for the opening up
of markets in the European Union to Paraguayan fresh beef exports.
According to the country's animal health agency Senacsa, in the first five
months of this year, Paraguay's fresh beef exports grew by 37% to 73,005 tons,
and by 90% in revenue terms to US$257 million, representing the highest growth
rate of any Mercosur country. Another important factor was the average price
per ton of US$3,523.
To access the full version visit our website at www.minerva.ind.br/ir
About Minerva S.A.
Minerva S.A. is one of the leading producers and sellers of beef, leather
and live cattle in Brazil, and is one of the country's three largest exporters
in the sector in terms of gross revenue, exporting to some 80 countries.
SOURCE Minerva S.A.
Investor Relations, Ronald Aitken - IR Superintendent, +55 (11) 3074-2434,
ri@minerva.ind.br
