Seeking Alpha reported this morning that the IPO JBSFI is being cancelled after a court-ordered $230 million asset freeze forced JBS SA to suspend cattle purchases and slaughter activities at seven facilities in the state of Mato Grosso do Sul in Brazil.
JBS (OTCQX: JBSAY) has canceled the $500 million IPO of food subsidiary JBS Foods International BV planned for 2018.
JBS is the world’s number one beef, leather and chicken producer. They are the world’s number two pork and lamb producer. JBS has an exuberant impact on Brazilian land-use planning and deforestation with 70% of deforestation linked to the cattle industry.
JBS controlling shareholders Joesley and Wesley Batista will face trial for insider trading in violation of a plea deal agreed to in May that kept them out of prison.
With this news, 7 plants are shutting down and plan to be closed indefinitely. JBS stated they are working to maintain the 15,000 direct and 60,000 indirect jobs affected and will continue to pay employees.
Earlier this year Brazil’s environmental protection agency (Ibama) temporarily suspended operations at two JBS processing facilities for buying 59,000 head of cattle sourced form 507 square kilometers of illegally deforested regions in Brazil.
Article available here: Seeking Alpha JBS