Packer and tanning group JBS has confirmed reports that it has withdrawn a request for an initial public offering (IPO) on the New York Stock Exchange of shares in its JBS Foods International BV division.
It announced its intention to launch the IPO for this part of its business in December 2016, but on October 13 it submitted a formal request for withdrawal to the United States Securities and Exchange Commission.
On picking up on the news, media in the US said “investor appetite” for shares in JBS Foods International had been dampened by months of scandal affecting the parent company in Brazil.
JBS is implicated in a wider corruption scandal that has threatened to bring down Brazil’s government and two of its leaders, Wesley and Joesley Batista have been in prison since September, accused of insider trading and other offences.
In a statement on October 17, JBS insisted it still wants to float its international division. It said the request for withdrawal was motivated only by “procedural matters” and was temporary. It said: “This does not alter the company’s decision to launch an IPO for JBS Foods International at the most opportune time and does nothing to detract from the company’s view that this [the IPO] is the best way to maximise the value of its international business in the best interests of the company and of its stakeholders.”
Information courtesy of Leatherbiz