Go To Top
JBS Plant

 

20th June, 2016

Meatpacker JBS today unveiled a R$6 billion (US$1.8 billion) divestment plan, putting dairy, poultry and cattle feeding assets on the block to cut debt after a corruption scandal raised concerns about its financing costs.

JBS, whose controlling shareholder J&F Investimentos recently agreed to pay a massive leniency fine after becoming embroiled in sweeping graft probes that have ensnared politicians and executives, said in a securities filing that its board and state development bank BNDES still had to approve the planned asset sales.

The plan, which aims to raise R$6 billion (US$1.8 billion), includes a 19.2% stake in Brazil-based dairy company Vigor Alimentos, along with its Northern Ireland unit Moy Park and Five Rivers Cattle Feeding in North America. Five Rivers has a combined feeding capacity of more than 980,000 head of cattle and locations in Colorado, Kansas, Oklahoma, Texas, Arizona, and Idaho, according to its website. Five Rivers also manages a 75,000-head capacity feedyard in the Canadian province of Alberta.

U.S. feeder cattle futures fell to nearly a two-month low of US 140.775 cents per pound after the JBS announcement, before rebounding to trade down 1.625 cents at 143.175 cents. JBS shares were down 3.46% at R$6.13 in early afternoon trading in São Paulo. Traders said some investors were paring bets that JBS would have to sell larger slaughter operations, which would have been far more disruptive than selling its feed operations. "Originally, we were unsure if they would have to close a plant or something like that. This is just divesting itself from a feeding unit that someone else could buy and operate," said David Hales, a U.S. cattle analyst.

MOY PARK UP FOR SALE

Moy Park is one of Britain's top 10 food companies, with 13 processing and manufacturing units in Northern Ireland, England, France, the Netherlands and Ireland. The company supplies 25% of chicken consumed in Western Europe, according to its website. Moy Park also has brands of ready-to-eat meals, breaded and frozen foods and desserts. JBS acquired Moy Park from Brazilian rival Marfrig two years ago for US$1.5 billion.

Reuters reported last week that two investment banks empowered to handle a sale of Vigor have contacted French dairy producers Danone and Groupe Lactalis, Mexico's Grupo Lala SAB de CV and Switzerland's Emmi to analyze the business. JBS has a minority state in Vigor, which is majority-controlled by JBS' parent, J&F Investimentos.

Source: Reuters

Latest News

  • Carrefour

     

    18th July, 2017

    Grupo Carrefour Brasil SA's initial public offering could price at the bottom of a suggested price range later on Tuesday, reflecting concern over too stretched a valuation for Brazil's biggest supermarket chain, three people familiar with the matter said.

  • Soy bags line a field in Mato Grosso

     

    4th July, 2017

    Brazilian farmers are discovering a downside to becoming one of the world’s top producers of soybeans: they’re running out of room to store all the unsold supply.

  • JBS logo

     

    20th June, 2016

    Meatpacker JBS today unveiled a R$6 billion (US$1.8 billion) divestment plan, putting dairy, poultry and cattle feeding assets on the block to cut debt after a corruption scandal raised concerns about its financing costs.

  • Paulo Cesar Silva

    19th June, 2017

     

    Paulo Cesar Silva, chief executive officer at Embraer SA, discusses the impact of political turmoil in Brazil, progress made on the E195 Mark 2 aircraft, and the potential for aircraft deals with Iran. He speaks with Bloomberg's Guy Johnson from the Paris Air Show on "Bloomberg Surveillance." (Source: Bloomberg)

     

  • Daihatsu Sirion

     

    14th June, 2017

    Daihatsu Motors said today it plans to launch compact cars in Brazil, as parent company Toyota Motor Corp looks to its minicar subsidiary to help it expand in emerging markets and produce lower-cost, quality vehicles.

  • Bovespa

     

    17th April, 2017

    Economic activity in Brazil grew in February at the fastest pace since January 2010, a central bank indicator showed on Monday, in the strongest sign yet that Latin America's largest economy is emerging from a two-year recession.

  • Fortaleza Airport

     

    17th March, 2017

    The federal government raised R$3.72 billion (US$1.2 billion) with the concession of four Brazilian airports yesterday (Thursday 16th March). The result was better than initial estimates of R$3.014 billion (US$972 million), achieving a 23% premium for the actual results.

  • Salvador Airport

     

    10th March, 2017

    Brazil is confident of strong investor turnout at an auction next week for the rights to run four airports, two government sources said on Friday, with at least nine operators showing appetite for one of the first in a wave of privatizations.

  • Science lab

     

    8th February, 2017

    Institutes and researchers will be exempt from paying import duties when purchasing materials for research and technological development in 2017.