JBS announced a proposal to list company shares on the São Paulo Stock Exchange, using Brazilian Depository Receipts and the New York Stock Exchange, in order to better reflect the company’s global presence and unlock value for shareholders.
“Today, JBS presents a transformative value proposition to its shareholders and the market that will unlock the potential value of our global company for all stakeholders,” Gilberto Tomazoni, JBS Global CEO, said in a release. “The dual listing strategy will accelerate our capacity for diversification and growth into more branded and value-added food products, reduce our cost of capital and generate greater returns for shareholders, while creating opportunities for the communities where we operate and for our more than 260,000 team members around the world.”
Under the proposal, Level II Brazilian Depository Receipts will be traded on B3, backed by Class A shares listed on the NYSE, the company shared. Minority shareholders may cancel Brazilian Depository Receipts at any time to directly hold Class A shares. A dividend distribution linked to the dual listing will be part of the transaction, given the strategic relevance of the proposal.
“This proposal will enhance transparency and strengthen corporate governance, attracting a broader base of investors with greater financial capacity,” Guilherme Cavalcanti, JBS Global CFO, said in a release. “Importantly, the proposal will provide flexibility to finance growth through the issuance of equity while reducing the cost of capital, allowing the company to compete on an equal footing with global peers.”
The company said its operational structure, including assets, supply chains and financial flows around the world, will not be impacted by the proposed dual listing, creating certainty for employees, producers and customers. The company will be subject to regulations set forth by the U.S. Securities and Exchange Commission (SEC), NYSE and the Brazilian Securities Commission (CVM).
“The market has patiently requested this next step from our company, and we believe we have responded with a compelling proposal that reinforces our commitment to Brazil, creates value for our stakeholders and should be well received by minority shareholders and the market,” Tomazoni said in the release.
JBS operates a diversified, global food production platform, with operations and commercial offices in 24 countries, and over 330,000 customers in more than 190 countries, the company noted. Established in Brazil 70 years ago, nearly 60% of its global workforce resides in Brazil, producing food and related products in more than 130 production facilities spread across all regions of the country. The company also has significant operations in North America, Europe, the UK, Australia and New Zealand.
