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JBS Said to Hire JPMorgan for $1.3 Billion Food Unit IPO

By Cristiane Lucchesi and Gerson Freitas Jr.
April 11, 2014 11:00 PM EDT 1 Comments

JBS SA (JBSS3), the world’s largest beef producer, hired units of JPMorgan Chase & Co. and Banco Bradesco SA for a 3 billion-real ($1.3 billion) initial public offering of its poultry and processed food unit, according to two people with direct knowledge of the matter.

The company also hired Banco Itau BBA SA, Banco Santander SA (SAN), Grupo BTG Pactual (BBTG11) and Banco do Brasil SA to underwrite the share offering of JBS Foods, the people said, asking not to be identified because negotiations are confidential. The timing of the sale will depend on market conditions, they said.

Exame magazine reported the hiring of the banks on April 10. JBS, Banco do Brasil, Santander, JPMorgan, Itau BBA, Bradesco BBI SA and BTG declined to comment.

JBS Foods, the second-largest producer and exporter of poultry and pork in Brazil, was formed after JBS agreed to buy Seara food processing assets from Marfrig Global Foods SA for 5.85 billion reais in June 2013. Seara sales totaled 7.1 billion reais in 2012, according to Marfrig regulatory filings.

The IPO would help unlock value by separating the unit from the parent company, a third person said.

To contact the reporters on this story: Cristiane Lucchesi in Sao Paulo at clucchesi5@bloomberg.net; Gerson Freitas Jr. in São Paulo at gfreitasjr@bloomberg.net

To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net Jasmina Kelemen

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