Brazil's Vigor offered to Danone, Lactalis, Lala, sources say

Banco Bradesco

13/06/2017 17:33

By Tatiana Bautzer 
    SAO PAULO, June 13 (Reuters) - Fábrica de Produtos 
Alimentícios Vigor SA is being offered to about half a dozen 
peers including Groupe Lactalis SA and Danone SA, as the 
Brazilian dairy producer's owners raise cash to pay the world's 
largest leniency fine and other debts, two people with knowledge 
of the process said on Tuesday. 
    The process to sell Vigor  FABPA.UL , which the investment 
banking units of Banco Santander Brasil SA  SANB11.SA  and Banco 
Bradesco SA  BBDC4.SA  are advising, is in an initial stage, 
said the people, who declined to elaborate on the bidding 
process. 
    Apart from both French dairy producers, other companies 
invited to analyze Vigor's business include Mexico's Grupo Lala 
SAB de CV  LALAB.MX  and Switzerland's Emmi AG  EMMN.S , the 
people said. So far, no price or a deadline for offers was 
decided, and there is no certainty a deal can be reached, the 
people said. 
    The media office of Danone  DANO.PA  declined to comment. 
J&F, Lala, Lactalis, Emmi and the banks did not immediately 
comment on the matter. The people asked for anonymity to speak 
freely about the process. 
    The plan comes two weeks after J&F Investimentos SA, the 
family holding company that controls Vigor, agreed to pay a 
record-setting 10.3 billion-real ($3.1 billion) leniency fine. 
J&F also needs cash to repay about 14 billion reais in loans 
coming due within the next 12 months, Reuters reported on June 
7. urn:newsml:reuters.com:*:nL1N1J315Z 
    Members of J&F's Batista family entered plea deals in which 
admitted bribing politicians to win advantages for their 
meatpacking, financial, pulp and apparel empire. urn:newsml:reuters.com:*:nL1N1IX0DK 
    Foreign interest on Vigor, a relevant player in Brazil's 
dairy market, has lingered for years. J&F and other companies 
discussed potential mergers and acquisitions for Vigor, but 
those talks always floundered because of price issues, sources 
told Reuters in recent months. 
    ($1 = 3.3120 reais) 
 
 (Editing by Guillermo Parra-Bernal and David Gregorio) 
 ((tatiana.bautzer@tr.com; Tel: +55-11-5644-7756; Mob: 
+55-119-4210-4173; Reuters Messaging: 
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Keywords: FABRICA PRODUTOS M&A/