A massive restructure at JBS, the world's biggest meat
packer, is now officially underway, as the bank asked for shareholder approval,
and requested regulatory permission for a New York Listing.
The group, which owns the Swift, Pilgrim's Pride and Moy
Park brands, is proceeding with a structural shakeup which will leave most of
the company's assets in the hands of a New York listed entity, with only a
minority stake in its Brazilian meat packing business remaining on the Brazilian
JBS first announced its intention to list in New York in
May, on the basis that such a move would give it access to cheap credit.
US business takes
On Monday JBS announced that it is soliciting shareholders
consent for the restructuring.
On Friday JBS's Foods International (JBSFI), the US business,
filed a request with the US Securities and Exchange Commission, for the
distribution of its shares to JBS shareholders, on a pro rata basis.
Minority shareholders will be offered JBSFI shares, in
exchange for their existing equity.
New York Listing
Under the new structure, JBSFI will have full ownership of
all the company's businesses, including the Brazilian food business Sear
Alimentos, apart from the Brazilian beef business.
The new business will be headquartered in Ireland, where JBS
operates its Moy Park business, and is listed on the New York Stock Exchange
Through a holding company, JBSFI will have a majority stake
of up to 75% of the Brazilian business, with the remainder of shares floating
on the Brazilian exchange.
First step to restructuring
The Brazilian bank BTG Pactual said the listing was "a key
first step to complete the global restructuring".
"JBS still expects the deal to be concluded by year-end,
pending all the requisite approvals by local authorities and shareholders," BTG
BTG was bullish on JBS prospects after the restructure.
"Assuming JBSFI can capture the advantages of being a
US-listed company, which include enhanced corporate governance… and better
access to global equity and debt markets, we continue seeing massive benefits,"
the banks said.