JBS Shares Surge Ahead of Proposed U.S. Listing as BNDESPar Abstains

Brazil’s JBS shares rose over 14.5% after BNDESPar agreed to abstain from voting on a U.S. listing, easing potential obstacles for minority shareholders. Analysts view this positively, expecting a smooth approval process.

Shares of Brazilian meatpacking giant JBS JBSS3 surged following its progress towards a listing in the United States. On Monday, JBS announced that its second-largest shareholder, state investment entity BNDESPar, agreed to abstain from voting at an upcoming meeting pertaining to the proposed dual listing. This decision paves the way for other minority shareholders to make the final call on the matter.

Following this announcement, JBS experienced a remarkable rise of over 14.5%, making it the largest gain on Brazil’s benchmark stock index, Bovespa IBOV, which remained relatively stable during the same period. Analysts from JPMorgan indicate that, according to their discussions with investors, the company is unlikely to face significant obstacles in having the listing approved with BNDESPar’s abstention.

JPMorgan remarked, “We see this as a key positive news for the company, as it ensures the removal of a major overhang to the name.” This sentiment reflects the positive outlook analysts have regarding the potential dual listing.

In conclusion, JBS’s share price has witnessed a notable increase following BNDESPar’s decision to abstain from voting on its U.S. listing. This change is expected to simplify the approval process, allowing JBS to focus on expanding its market reach. Analysts are optimistic about the company’s prospects, viewing the situation as a significant development in its dual listing objective.

Original Source: www.tradingview.com