Home Business BRF’s main shareholders support Pedro Parente’s nomination to chair Board of Directors

BRF’s main shareholders support Pedro Parente’s nomination to chair Board of Directors

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Name of relative was appointed by the businessman Abílio Diniz, current chairman of the company’s board of directors; decision will be taken on the Apr. 26th.

BRF’s main shareholders, chicken meat exporter, supported the appointment of Pedro Parente, president of Petrobras, to head the board of directors of the .

Parente’s appointment to BRF was made by businessman Abilio Diniz, owner of the brands Sadia and Perdigão, current chairman of the board, who has been criticized in recent months by the crisis experienced by the food company. BRF ended 2017 with a net loss of R$ 1 billion, facing high debt and was mentioned in the Federal Police’s Operation Weak Meat.

Parente’s statement, which also commands the board of directors of stock exchange operator B3, boosted BRF shares on Wednesday (18), which closed up 9.5%. The papers have fallen about 50% since the beginning of 2017.

The main shareholders of BRF, pension funds Petros and Previ and Tarpon Investimentos, this ally of Diniz, sent press releases highlighting Parente’s qualities to recover the processed food producer.

Petros, the largest single shareholder of BRF with 11.4% stake, said that “it believes that the executive (Pedro Parente) brings together skills and experiences that will undoubtedly contribute to the company’s recovery (BRF).” Previ, which owns 10.7% of the capital, said that it believes that Parente “has the necessary skills to set new standards and enable BRF to recover and its market value.”

Prior to commanding Petrobras, appointed by President Michel Temer, Parente was chief executive of the Brazilian unit of US commodity operator Bunge between 2010 and 2014.

BRF has been presided by José Aurélio Drummond Jr., who replaced Pedro Faria, an indication of Diniz, who was criticized by shareholders and was arrested by PF in the second stage of the Operation Weak Meat.

Diniz said in a statement from its investment vehicle, Península Participações, that Parente’s appointment came amid “the search for a consensus name among BRF’s major shareholders.”

So far, attempts to form a unified name plate have failed, prompting manager Aberdeen to suggest the adoption of multiple voting, which gives investors the power to vote in proportion to the number of seats on the board.