The J&F investments of the Batista family and BNDEPAR, the other large holder of JBS SA Capital, have agreed to let only minority shareholders decide whether they should mention JBS shares in the stock markets in New York and São Paulo.
The two -year -old JBS Dual Listing Plan will be voted during an extraordinary general meeting on 23 May. JBS, the world’s largest producer of meat, has completed the registration process with the US Securities and Exchange Commission (SEC). The transaction is also subject to the approval of the Securities Regulator of Brazil (CVM).
In the double mention, JBS shares would be traded on the New York Stock Exchange (NYSE) and B3, the Brazilian stock exchange.
JBS has chosen to give its minority shareholders full decision -making power. The majority shareholders, who include the controversial Bastisa brothers, will abstain from votes.
“Once completed, this step will mark a new chapter in the history of JBS – one with the potential to unlock the shareholder value and to broaden our investor base,” said Guilherme Cavalcanti, CFO of JBS. “If shareholders approve, the company expects to offer shares on the American market in June of this year.” Once completed, this step will mark a new chapter in the history of JBS – one with the potential to unlock the shareholder value and broaden our investor base “.
“We believe that this transaction will increase our visibility in the worldwide markets, attract new investors and further strengthen our position as a global leader of the food industry,” Tomazoni added.
JBS SA went on the American market in 2007 with the purchase of Swift & Company of $ 1.5 billion, making it the largest beef processor in the world. JBS USA has its head office in Greeley, co. JBS production facilities can be found worldwide in 17 countries.
JBS has been criticized for the double listing plan because of the earlier criminal activities of the Batista brothers and the environmental record of the company. However, it remains an economic powerhouse. It invests $ 100 million in Vietnam and Texas, with $ 50 million to Colorado. The net income for the first quarter increased by 78 percent, at $ 520.7 million.
Wesley and Joesley Batista are from the JBS Founding Family, who started as a small butcher shop in Regional Brazil in 1953 by José Batista Sobrinho, a rancher in Anápolis. It has acquired other meat companies since 1968. The Batista brothers are, via J&F Investments, the controlling JBS shareholders.
The SEC and the US Department of Justice have given a fine of JBS $ 280 million a fine, mainly for the Brazilian bribery schedule that led to the acquisition of Pilgrim’s Pride.
Since it arrived the American market and JBS USA founded in 2007, JBS continued to:
- Buy the American beef and pork processing company, Swift Foods Co.
- Acquire the beef processing activities of Smithfield Foods.
- Pilgrim’s proudly took over.
- Buy Cargill’s pork processing activities in 2015.
In 2017, J&F Investments reached a settlement to pay a fine of $ 3.2 billion for its role in an extensive bribery scandal in Brazil. The Batista brothers admitted that they bribe everyone from front-line meat inspectors to the president of Brazil. Later the brothers were imprisoned for a short time, but were still worth $ 6 billion when they appeared.
When reaching the double list, JBS is planning to move its world head office to the Netherlands for a number of important tax benefits.
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