BRAZIL-SADI MEAT GIANT.
Brazilian meatpacker Sadia S/A (SDA) is considering an issue of shares to reinforce its cash position, said company Chairman Luiz Fernando Furlan, quoted Monday by local newspaper O Estado de Sao Paulo.
According to Furlan, the company is also interested in obtaining a loan from the Brazilian Development Bank, or BNDES, to help its capital flow.
The executive, who did not provide the amount to be raised from the possible operations, said that both alternatives will be evaluated by the company’s shareholders at a general assembly in June.
In 2008, the company reported a net loss of BRL2.5 billion, reversing a profit of BRL768 million in 2007, due to a nonrecurrent loss from foreign exchange futures positions. It was the company’s first annual net loss after 65 years in business.
The company is also studying the possible sale of assets in order to reinforce its position.