February 25, 2018 / 11:59 PM / 4 months ago

UPDATE 1-Shareholders in Brazilian meatpacker BRF seek management shake-up

(Adds statement by Previ pension fund, paragraph 8)

SAO PAULO, Feb 25 (Reuters) - The two largest shareholders in Brazilian food processing company BRF SA called on Sunday for an extraordinary shareholders meeting to replace the firm’s entire board of directors, following its worst annual results ever.

Pension funds Petros and Previ said in statements that they 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 retail 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 about 22 percent of BRF shares in total.

“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.

Previ said in a statement that it “is worried, as is Petros, about the recurring negative results and the loss of value of the company’s shares.”

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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