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BNDES looking to offload a stake in JBS: Bloomberg
Posted on Friday, 29 November 2019 11:40
The Brazilian Development Bank (BNDES) is planning to sell part of its 21.3 per cent holding in Brazil-based meat processing company JBS for around BRL 8.00 billion (USD 1.88 billion), people close to the matter told Bloomberg.

According to those in the know, the group has hired Bank of America, Banco BTG Pactual and Banco Bradesco, among others, to get the ball rolling on a transaction which is likely to take place in January.

However, local media reports stated the possible sale could happen this year, Bloomberg observed.

BNDES has not confirmed a timeframe for the potential deal, but one of the sources, who asked to remain anonymous as the situation is private, told the news provider the planned January date would give the group and the banks time to finalise details for the divestment.

Sao Paulo-headquartered JBS is billed as the world’s largest meat processing company.

It serves over 275,000 customers across 190 countries and is active within the leather, biodiesel, collagen and natural casings categories.

JBS’ brands include the likes of Gold’n Plump, Aspen Ridge, LeBon and Plumrose.

For the nine months ended 30th September 2019, the group posted revenue of BRL 52.18 billion, up 5.3 per cent from BRL 49.40 billion in the corresponding period of 2018.

According to Bloomberg, the sale is in line with Brazilian president Jair Bolsonaro’s strategy to reduce the size of the state.

When approached by the news provider for comment, BNDES did not respond.

Zephyr, the M&A database published by Bureau van Dijk, there have been 1,640 deals targeting food manufacturers announced worldwide since the beginning of 2019.

In the most valuable of these, Henan Shuanghui Investment and Development agreed to acquire China’s Henan Luohe Shuanghui Industrial Group for CNY 39.09 billion (USD 5.56 billion).

Arnott’s Biscuits Holdings, Bellamy’s Australia and Voyage Holdings have also been targeted in the sector this year.

© Zephus Ltd