JBS withdraws plan for U.S. IPO
In a Friday filing with the U.S. Securities and Exchange Commission, JBS Foods International requested a withdrawal of the IPO. While neither company gave a new timetable for the IPO, JBS said in a statement to Reuters that a U.S. listing of JBS Foods "is the best way possible to maximize shareholder value." Parent JBS and the processed food subsidiary first announced plans for a U.S. offering on Dec. 5. São Paulo-based JBS, the world's No. 1 meatpacker, reaffirmed plans to list the subsidiary in August, saying a transaction could take place by the end of next year.
The proposal for the JBS Foods International IPO was first put to test in March, after a scandal over an alleged bribery of health officials triggered bans on Brazilian meat exports. Two months later, two members of the family that controls JBS agreed to a plea bargain deal in Brazil relating to a corruption probe.A collapse of the plan is a setback for Brazil's billionaire Batista family, which owns 42 percent of JBS and saw the IPO as a way to improve JBS's global standing. The transaction was seen as a way to help decouple JBS's businesses from Brazil -- where reputational issues have impaired share performance in recent months.