JBS Moves Closer to NYSE Listing as BNDES Agrees to Key Abstention
JBS, the Brazilian meatpacking giant, announced on Monday that its controlling shareholder J&F Investimentos and BNDESPar have reached a pivotal agreement regarding the company’s proposed dual listing plan.
This development significantly advances JBS’s long-standing ambition to list its shares on the New York Stock Exchange while maintaining its presence on Brazil’s B3 exchange.
BNDESPar, the investment arm of Brazil‘s state development bank which holds 20.8% of JBS’s capital, has agreed to abstain from voting at the upcoming shareholder assembly.
This abstention effectively transfers the decision power to other minority shareholders, removing a major obstacle to the listing process. The agreement includes a potential compensation mechanism for BNDESPar.
The state investor could receive up to R$500 million ($88 million) if JBS shares trade below an undisclosed threshold during the second half of 2026. JBS first unveiled this dual listing strategy in July 2023, describing it as a transformative value proposition.
JBS’s Strategic Move Towards Dual Listing
The company believes its current valuation significantly lags behind American competitors due to its absence from major US indexes. The meat processor currently trades at approximately 4.3 times its 2024 expected EBITDA.
This valuation trails competitors like Pilgrim’s Pride (6.2x) and Tyson Foods (8.5x). Company executives estimate a NYSE listing could potentially double JBS‘s market capitalization to around $30 billion.
Under the proposed structure, Level II Brazilian Depositary Receipts would trade on B3, backed by Class A shares listed on the NYSE. Minority shareholders would retain the option to convert their BDRs to directly hold Class A shares at any time.
JBS operates a truly global food production platform. The company maintains operations in 24 countries and serves over 330,000 customers worldwide. Nearly 60% of its global workforce resides in Brazil, where it operates more than 130 production facilities.
The company expects the dual listing to strengthen corporate governance and attract more institutional investors. It also aims to reduce capital costs and provide greater flexibility for growth financing. JBS plans to refile its application with the US Securities and Exchange Commission later this year.
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