Petrobras President Agrees to Replace Abilio Diniz as Chairman of BRF's Board

04/19/2018 - 12h12

The dispute over the command of BRF seems to have come to an end. The president of Petrobars, Pedro Parente, accepted to substitute businessman Abilio Diniz as the head of the board of the No. 1 processed food company in Brazil.

Parente was appointed by Diniz himself as he searched for an agreement to resolve the stalemate and was supported by Diniz's allies, such as Tarpon fund, and his adversaries, including the pension funds Petros (Petrobras) and Previ (Banco do Brasil).

In an official statement, Parente, who will continue as the president of Petrobras, said that the BRF shareholders meeting confirmed his victory on March 26 and that he will resign as the head of the B3 council, which controls the São Paulo stock market. Parente can only occupy one position of the type out of Petrobras.

The board is a collegiate that defines the guidelines of a publicly traded company and supervises their enforcement. It also approves directors appointed and schedules assemblies to vote important changes in a company.

Folha verified that the shareholders' consensual approval of his name was a basic condition imposed by Parente.

The case is likely to come to a conclusion on Thursday, April19, during the board meeting.

The news made BRF stocks rise by 9.51% to R$ 23 (US$ 6,7); by comparison, their price reached R$ 70 (US$ 20,5) in 2015.

Translated by THOMAS MUELLO

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