Brazil’s JBS reboots plans to list shares in New York By Reuters

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<span>© Reuters. FILE PHOTO: The logo of Brazilian meatpacker JBS SA is seen in the city of Jundiai, Brazil June 1, 2017. REUTERS/Paulo Whitaker/File Photo</span><br />
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<p>By Ana Mano and Roberto Samora</p>
<p>SAO PAULO (Reuters) -JBS 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.</p>
<p>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.</p>
<p>JBS’ Global CEO Gilberto Tomazoni said it is possible that meeting will take place in 30 days. </p>
<p>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.</p>
<p>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.</p>
<p>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. </p>
<p>This is based on the assumption the value of the company’s shares will rise, helping it finance future growth plans, he noted.</p>
<p>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 <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Tyson Foods </span></span> (NYSE:) and Pilgrim’s Pride (NASDAQ:), which it controls. </p>
<p>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.</p>
<p>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.</p>
<p>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.</p>
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