A shareholder meeting in Sao Paulo has seen the proposal to list shares on the New York Stock Exchange.
This is despite of doubts cast just a day earlier, when a preliminary count of the votes revealed a majority in favour of blocking the move (52%) to dual listing on the New York Stock Exchange and B3 (the Brazilian stock exchange).
According to Reuters, JBS shares have grown more than 30% since March, amidst suggestions that a US listing would lift its valuation. On 22 May shares fluctuated, slipping to around 2% in Sao Paulo, Brazil midday trading.
Shares then grew by 2%, marking an upward trend in the stock price which has risen by a total of 37% since Mid-March.
Concerns raised
The dual listing has been up for debate for a long while, halted by concerns from environmentalists, animal rights groups, US lawmakers, and some of its own investors.
Last October, an open letter signed by the likes of Greenpeace, Rainforest Action Network and Friends of the Earth, warned the move would bring about “significant risk” to the climate.
Independent investor advisory firm Glass Lewis has been among those to issue caution noting that the return of Joesley and Welsley Batista to the JBS board should concern investors. The siblings are sons of JBS’s founder and were jailed in Brazil in 2017 for bribery and corruption charges.
In 2020, Joesley and Wesley and their companies J&F Investimentos S.A. and JBS S.A., agreed to pay nearly $27 million to resolve charges arising out of an extensive bribery scheme that took place over multiple years.
More recently, U.S. Sen. Elizabeth Warren, a Massachusetts Democrat sent a letter to JBS noting that she was concerned Pilgrim’s Pride (owned by JBS) made a sizable donation of $5 million to President Donald Trump’s inaugural committee in order to curry favour with the Trump Administration.
“The SEC’s decision, made just months after the donation from Pilgrim’s Pride, raises questions regarding undue influence,” Warren wrote.
In response to the donation, JBS issued the following statement: “As a U.S.-based food company, Pilgrim’s was pleased to support the 2025 inauguration ceremony. We have a long bipartisan history of participating in the civic process and look forward to working with the Administration to create opportunities for American farmers and provide safe, affordable food for American families.”
‘Not difficult to see the benefits’
JBS has said the approval of the dual listing will accelerate its “capacity for diversification and growth into more branded and value-added food products”, and reduce its “cost of capital and generate greater returns for shareholders, while creating opportunities for the communities” where it operates and for its 260,000+ team members around the world.
“JBS getting a New York listing has been quite controversial because of the company’s perceived record on ethical and environmental issues. However, it is not difficult to see the benefits that a US listing brings in terms of a wider investor base and access to lower interest rates, which will accelerate growth and acquisition opportunities. No surprise that JBS shareholders voted for it,” Julian Wild, director of Rollits told Food Manufacture.
With annual revenues of R$375 billion, JBS operates a global food production platform, with operations and commercial offices in 24 countries, and over 330,000 customers in more than 190 countries.
Established in Brazil 70 years ago, nearly 60% of its global workforce resides in Brazil, producing food and related products in more than 130 production facilities spread across all regions of the country. The company also has significant operations in North America, Europe, the UK, Australia and New Zealand.
JBS expects to begin trading on the New York Stock Exchange on June 12.
