JBS S.A. shares soared over 14.5% after news of its progress toward a U.S. listing. The company’s second-largest shareholder, BNDESPar, agreed to abstain from a vote on the listing proposal, allowing other shareholders to decide. Analysts suggest the approval process will likely be smooth following this change.
Shares of Brazilian meatpacking giant JBS S.A. (JBSS3) experienced a significant surge following its progress towards a potential dual listing in the United States. This increase followed the announcement that JBS’s second-largest shareholder, the government investment entity BNDESPar, has agreed to abstain from voting in an upcoming shareholder meeting regarding the listing proposal. By doing so, BNDESPar allows other minority shareholders to determine the final outcome of the vote.
Following this development, JBS shares rose over 14.5%, marking it as the top performer on Brazil’s benchmark stock index, Bovespa (IBOV), which remained unchanged overall. Analysts from JPMorgan have indicated that conversations with investors suggest the company is unlikely to face significant hurdles regarding the approval of the listing now that BNDESPar has opted out of the voting process. JPMorgan noted, “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 recent announcement regarding its potential U.S. listing has greatly influenced its share performance, notably leading to a 14.5% increase. The decision by BNDESPar to abstain from voting enhances the likelihood of a favorable outcome, significantly reducing uncertainties facing the company. Analysts remain optimistic about this development and its implications for JBS’s market position.
Original Source: www.tradingview.com
