Brazilian meat processing giant JBS SA has announced plans to launch shares of its subsidiary company, JBS Foods International, on the New York Stock Exchange (NYSE) in early 2017. While it has not disclosed what percentage of the company will be floated on the stock market, JBS SA says it will retain overall control of the business.
This latest announcement from JBS SA comes just over a month after a Brazilian government-run bank, BNDES, blocked initial plans by JBS SA to move its international headquarters to Ireland and float on the New York stock market. BNDES holds a more than 20% stake in JBS SA, having invested close to $4bn in the company over the last decade. The bank used its right to veto the planned move to Ireland, amid concerns the new Ireland-headquartered company could have been transformed into the overall parent company for tax purposes.
This latest announcement will see Brazil-headquartered JBS SA retain overall control of its subsidiary JBS Foods International, which is based in the Netherlands. JBS SA say the planned initial public offering (IPO) of its subsidiary company will go ahead in the first six months of 2017, while the number of shares to be listed and the proposed price of shares has not yet been determined.