JBS Group cancels plans to operate on the New York Stock Exchange

JBS canceled a planned $ 500 million initial public offering (IPO) of its processed food subsidiary JBS Foods International BV, nearly six months after corruption and food grade scandals affected investor demand for the operation.

In a filing with the United States Securities and Exchange Commission (SEC) on Friday, JBS Foods International requested withdrawal of the IPO because “it decided not to push the sale of securities (…) at this time.” Neither the parent, JBS, nor the unit provided details or offered any new timeline for the transaction.

Both companies had announced the plan to open on the stock exchange in the United States on December 5. Sao Paulo-based parent company JBS, which is the world’s largest refrigeration group, reaffirmed in August plans to list the subsidiary on the stock exchange, saying a deal could take place by the end of next year.

The proposal for the IPO of JBS Foods International was first tested in March after a scandal over alleged bribes of health officials led to bans on Brazilian beef exports.

Two months later, two members of the family that controls JBS reached an agreement of demarcation before the Brazilian justice in relation to a research on corruption. Family members, the Wesley brothers and Joesley Batista, were arrested last month in connection with insider trading and other crimes related to their agreed statement.

Wesley, JBS ‘former CEO, had to resign as a result of his arrest.

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