It said in a statement that a proposal to acquire Vigor from investment holding company J&F Investimentos SA, as well as a borrowing plan and potential share offering, would go before the Board.

Today (Aug 4), the Group has further announced that as a first step towards completing the transaction, Lala, FB Participações and JBS S.A. entered into a share purchase agreement pursuant to which Lala will acquire, subject to its terms and conditions, 91.99% of the shares of Vigor.

In addition, as part of the transaction, Lala may acquire from Arla Foods International an additional 8 percent of Vigors shares, increasing Lalas participation to 99.99 percent.

The transaction is subject to certain approvals by Grupo Lalas shareholders meeting, governmental authorizations, shareholder agreement and other contractual conditions.

Substantial provisions for a successful integration and mitigation of risks have been included in the share purchase agreement.

Financing for the transaction will include a bridge loan, followed by a combination of long-term debt and additional equity of approximately US$550 million, of which an estimated US$315 million will be committed by LALAs current shareholders, adds the group.