They’ve said this before. JBS SA plans to list its shares on the New York Stock Exchange (NYSE), as well as the São Paulo Stock Exchange (B3), where it already is listed.
It’s a complex transaction involving not only the Brazilian and U.S. corporations but also business vehicles to be created and incorporated in Netherlands and Luxembourg. Ultimately, a new entity to be called JBS NV will be the parent firm. Its Class A shares will be directly traded on NYSE and it will use Brazilian Depository Receipts on the Sao Paulo Exchange.
"Today, JBS presents a transformative value proposition to its shareholders and the market that will unlock the potential value of our global company for all stakeholders,” said Gilberto Tomazoni, JBS Global CEO. “The dual listing strategy will accelerate our capacity for diversification and growth into more branded and value-added food products, reduce our cost of capital and generate greater returns for shareholders.”
He was quoted in financial media as hoping the details could be worked out before the end of this year.
An NYSE listing has been a goal of world’s biggest meat packer since it acquired Swift & Co. in 2007. JBS at least twice has announced plans to list in the U.S. It would give the $71 billion (per our calculations) company a higher profile, access to cheaper capital and possibly raise its share price by providing clearer comparisons with its peer group, particularly Tyson.
Although established in Brazil 70 years ago, the company gets only about 30% of its sales from that country. It has operations and commercial offices in 24 countries and customers in more than 190 countries. The U.S. and North America are the biggest market, accounting for $30 billion, plus another $17.5 billion from American chicken processor Pilgrim’s Pride, which is 83% owned by JBS.
Speaking of Pilgrim’s, one financial analyst theorized that the cheaper capital could resurrect JBS’ pursuit of the remaining 17% of that chicken processor.
This plan needs approval of current JBS shareholders, and it will be scrutinized by the U.S. Securities and Exchange Commission, NYSE and the Brazilian Securities Commission.
