Brazil judge blocks JBS asset sale
A Brazilian judge has blocked JBS SA's planned sale of a South American unit while the attorney general's office urged the company's assets be frozen, in signs of fallout from a corruption probe involving the controlling shareholders of the world's No. 1 meatpacker.
JBS SA agreed to a deal to sell its beef operations in Argentina, Paraguay and Uruguay to Pul Argentina SA, Frigomerc SA and Pulsa SA, respectively, for a total of 300 mill. USD to Minerva SA. Common shares in JBS surged 4.3 percent, while those of Minerva reversed early gains on the judge's decision. Minerva's stock shed 2.7 percent to 11.52 reais as of 4:20 p.m. local time.
No word on any potential impact on the company’s proposed divestment of “less strategic assets” expected to generate 1.8 bn.USD in cash for the company. JBS announced the divestment plan on June 21th. Assets involved in the divestment program include its 19.2% interest in Vigor Alimentos SA; the company’s shareholding interest at Moy Park and the Five Rivers Cattle Feeding assets and farms.