February 25, 2018 / 9:03 PM / a year ago

Shareholders in Brazilian meatpacker BRF seek management shake-up

SAO PAULO, Feb 25 (Reuters) - Petros pension fund said on Sunday it was calling on Brazilian food processing company BRF SA to hold an extraordinary shareholders meeting to dismiss the firm’s entire board of directors following its worst annual results ever.

Petros said in a statement that along with the Previ pension fund and other shareholders, it asked the board chaired by Abilio Diniz to call the meeting, confirming reports by Brazilian media on Friday.

A dissolution of the board would likely lead to changes in the executive management of the company, and the removal of Diniz, a supermarket magnate.

BRF did not immediately respond to a request for comment.

BRF, the world’s largest poultry exporter, reported last Thursday a net loss of 1.1 billion reais ($339.78 million) in 2017, the company’s largest loss ever, as it wrote down unsold inventory and faced a difficult market for its exports to Europe and Asia.

Petros, the pension fund of state-run oil company Petrobras, and Previ, the pension fund of Banco de Brasil employees, hold around 20 percent of BRF shares.

“We share the market’s view reflected in the share prices that the company’s strategy needs to be reformulated so that its investment targets can be met,” the Petros statement said.

BRF shares closed down 8.3 percent at 8.40 reais on Friday on the Sao Paulo stock exchange. (Reporting by Roberto Samora; Editing by Peter Cooney)

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