December 7, 2018 / 3:09 PM / 5 months ago

CORRECTED-UPDATE 1-BRF's asset sales reach 800 mln reais as Brazilian firm moves to cut debt

(Corrects headline to say 800 mln reais, not $800 mln)

SAO PAULO, Dec 7 (Reuters) - Brazilian food processor BRF SA has agreed on the sale of around 800 million reais ($206 million) in assets as part of a plan to raise 5 billion reais to reduce debt, vice president of operations Lorival Luz told journalists on Friday.

This amount includes the sale to Marfrig Global Foods SA of Quickfood SA, an Argentine unit, for 233 million reais, as well as its plant and equipment in Varzea Grande, in central Brazil, for 100 million reais.

In June, BRF unveiled a restructuring plan to cut debt that includes the sale of operations in Europe, Argentina and Thailand. The company expects to raise 5 billion reais by selling these units and with the sale of receivables, real estate and reduction of inventory, a target that Luz reiterated to journalists.

BRF said it will post a loss with the sale of Quickfood in the fourth quarter since the asset is booked for a higher value. BRF still owns other assets in Argentina, such as Avex e Campo Austral.

Under the terms of the deal, Marfrig will supply BRF with hamburgers and other products for 60 months.

In November, BRF’s chief executive, Pedro Parente, told Reuters a turnaround in the world’s largest poultry exporter would not happen in less than two years. ($1 = 3.8759 reais) (Reporting by Alberto Alerigi; Editing by Christian Plumb and Steve Orlofsky)

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