JBS: IPO for US subsidiary still planned, but delayed
Operation Weak Flesh investigation contributed to delay
JBS still intends to list and seek an initial public offering (IPO) for a U.S. subsidiary, although it will take longer to do so than previously planned.
According to a Reuter’s report, JBS CEO Wesley Batista said that the Operation Weak Flesh scandal, in which JBS was one of several Brazilian meat and poultry processors accused of bribing inspectors to allow products unfit for consumption into commerce.
JBS has maintained its innocence.
“We will look for a window in the second half,” Batista said during a quarterly earnings call. “(Investors) have doubts in relation to what is going on.”
JBS reported financial results that fell short of expectations, but still showed a strong year-over-year profit. The company reported a net income of BRL$422 million (US$136 million) for the first quarter, compared to a net loss of BRL2.7 billion (US$870 million) for the first quarter of fiscal year 2016.
UPDATE 1-JBS delays but does not give up on U.S. IPO plan
SAO PAULO, May 16 (Reuters) - JBS SA, the world's largest meatpacker, has delayed but not ditched its plan to list a U.S. subsidiary this year despite a series of investigations targeting the company's owners, Chief Executive Wesley Batista said on Tuesday.