SAO PAULO, March 17 (Reuters) - The controlling shareholder of Brazilian meatpacking giant JBS and the Brazilian government's investment arm, BNDESPar, have reached an agreement that moves the company closer to listing its shares in both the United States and Brazil.
JBS announced in a securities filing on Monday that BNDESPar, the investment arm of Brazil's state development bank BNDES, agreed to abstain from voting at an upcoming meeting regarding the proposed dual listing. This decision leaves the final say to other minority shareholders.
BNDESPar confirmed that J&F Investimentos, a holding company led by JBS's founding Batista family, will not have voting rights on the issue at the shareholders' meeting. This move signifies a step forward in the potential dual listing process.
Over the years, BNDES' aggressive investments have transformed JBS into a global powerhouse, acquiring brands like Swift and Pilgrim's Pride. JBS, the world's largest meatpacker, has been lauded by the Brazilian government as a prime example of fostering "national champions."
BNDESPar, with an ownership of nearly 21% in JBS, stated its intention to maintain its stake after the dual listing. The agreement also outlines that BNDESPar could receive up to 500 million reais ($88 million) if JBS shares dip below a specified level post-listing in the latter part of 2026.
JBS aims to get the dual listing approved by the U.S. Securities and Exchange Commission by the year's end. The proposal for a dual listing, introduced in July 2023, has faced opposition from certain groups worried about environmental practices and prior corruption allegations involving the company's founders.
If the dual listing is greenlit, both controlling and minority shareholders will hold shares in JBS N.V., a company based in the Netherlands. BNDESPar highlighted its substantial investment in JBS, with total estimated gains reaching 22.7 billion reais as of December 31, 2024, representing an 11.35% internal rate of return.
($1 = 5.6861 reais)