JBS shares rose by over 14.5% as the company moves closer to a dual listing in the U.S. This follows the agreement by BNDESPar, JBS’s second-largest shareholder, to abstain from voting on the matter, thereby allowing minority shareholders to decide. Analysts forecast a favorable outcome for the listing without major obstacles.
Shares of Brazilian meatpacking giant JBS JBSS3 experienced a significant increase after the company advanced towards a potential dual listing in the United States. On Monday, JBS announced that its second-largest shareholder, the government investment fund BNDESPar, has consented to abstain from voting at an imminent shareholder meeting concerning the proposed U.S. listing. This strategic move shifts the decision-making power to other minority shareholders.
Following this announcement, JBS shares surged more than 14.5%, marking it as the top performer on Brazil’s benchmark stock index, Bovespa IBOV, which remained largely unchanged. Analysts from JPMorgan indicated that their discussions with investors suggested smooth approval for the listing, particularly with the BNDES’s abstention from the vote. They remarked, “We see this as a key positive news for the company, as it ensures the removal of a major overhang to the name.”
In conclusion, JBS’s progress towards a U.S. listing, facilitated by the abstention of a key shareholder, has prompted a notable surge in its stock valuation. With expectations from analysts indicating a favorable outcome for the proposal, the company appears well-positioned to enhance its market presence in the United States. This development underscores the strategic maneuvers JBS is undertaking to expand its operations in the global marketplace.
Original Source: www.tradingview.com
