Azzas 2154 shares surge on Farm Rio sale expectations

Shares of Azzas 2154 (AZZA3) saw significant appreciation, rising approximately 18% in a single session, driven by increasing expectations regarding the potential sale of the brand Farm Rio.

Farm Rio is considered a primary growth driver for the group. Market estimates suggest the brand could be valued between R$ 4.4 billion and R$ 5.5 billion. The sale process has attracted interest from major private equity funds, including Advent, GIC, CVC, and L Catterton. Morgan Stanley has been appointed to manage the process, with a deadline set for the end of September for interested parties to submit non-binding proposals.

The potential sale follows a reorganization agreement between controllers Alexandre Birman and Roberto Jatahy to separate business operations into two independent structures. Under this plan, Farm Rio will initially be shared, with ownership consisting of approximately 57.4% from Arezzo&Co and 42.6% from Soma, facilitating a future sale.