Brazil's JBS reboots plans to list shares in New York (updated)

Pilgrims Pride

12/07/2023 11:37

(Adds CEO's remarks in paragraphs 3 and 4)
    By Ana Mano and Roberto Samora
       SAO PAULO, July 12 (Reuters) - JBS SA  JBSS3.SA , the
world's largest meatpacker, on Wednesday proposed listing its
shares in New York, in addition to Sao Paulo, offering a 2.2
billion-reais ($454 million) dividend to coax investors into
backing the longstanding plan.
    The one-time dividend of 1 real per share is conditional on
the dual listing being approved, it said in a filing.
Shareholders will decide whether to accept the proposal at a
general meeting yet to be scheduled.
        JBS' Global CEO Gilberto Tomazoni said it is possible
that meeting will take place in 30 days. 
  
        He believes by December all steps to complete the
transaction will have been taken so that the company's shares
can start trading on the NYSE.
  
    The proposed structure will use a Netherlands-based vehicle
called JBS NV and have Class A shares with one voting right and
Class B shares with 10 votes, JBS said.
    A dual listing gives JBS a chance to broaden its investor
base and an opportunity to raise more capital through potential
follow-on share offerings without diluting investors, Tomazoni
said. 
    This is based on the assumption the value of the company's
shares will rise, helping it finance future growth plans, he
noted.
    Management has also repeatedly made the case that it would
reduce its cost of capital and help its shares trade at
multiples closer to peers such as Tyson Foods  TSN.N  and
Pilgrim's Pride  PPC.O , which it controls. 
    JBS was the first Brazilian meat packer to go public in
2007, the year in which it also embarked on a U.S. acquisition
spree starting with the purchase of Swift.
    The U.S. listing has been in the works for the better part
of a decade, but was postponed in part due to a 2017 corporate
corruption scandal in Brazil and then again amid the COVID-19
pandemic.
    JBS gets the lion's share of its revenue from the U.S.
market, where it processes beef, poultry and pork products for
domestic consumption and export.

 (Reporting by Ana Mano and Roberto Samora; editing by Jason
Neely, Sharon Singleton and Louise Heavens)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
+55-119-4470-4529; Reuters Messaging:
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