From WATTAgNet:

JBS Foods International has withdrawn its request with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO).

No reason was given to the SEC for the company no longer wanting to pursue the IPO.

The company initially filed for the IPO in December 2016 in hopes of raising up to US$500 million.

However, the U.S. subsidiary of Brazil-based meat and poultry company JBS, announced several months later that while the IPO would take longer than initially planned.

Since JBS filed for the IPO, the company has been mired in scandals. First, it was Operation Weak Flesh, in which a number of Brazilian meat and poultry companies were accused of bribing inspectors to allow meat unfit for consumption to be allowed into commerce.

The company later found itself connected to a corruption scandal, in which JBS Chairman Joesley Batista and JBS CEO Wesley Batista, who are brothers, admitted to bribing more than 1,800 politicians. They have most recently been accused of insider trading for allegedly using privileged information obtained during the plea bargaining process for the corruption scandal to improve their financial positions. Both remain jailed, and both have stepped down from their leadership roles within the company.

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The brothers’ father, José Batista Sobrinho, also the founder of JBS, is the current CEO, while Tarek Farahat is the current chairman.


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