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Montevideo, December 19th 2018 - 01:51 UTC

Batista family, Brazilian meatpacker JBS main shareholder face several civil lawsuits

Sunday, August 20th 2017 - 13:14 UTC
Full article 3 comments
Brazil's BNDES, whose investment arm is JBS' No. 2 shareholder, said it would endorse a civil lawsuit against management and the billionaire Batista family Brazil's BNDES, whose investment arm is JBS' No. 2 shareholder, said it would endorse a civil lawsuit against management and the billionaire Batista family
The lawsuit alleges that the Batista brothers role in a corruption scheme led to heavy losses in the value of JBS shares. The lawsuit alleges that the Batista brothers role in a corruption scheme led to heavy losses in the value of JBS shares.
“It is not a matter of if but when,” Wesley Batista said of the unit's IPO plan. JBS Foods includes beef brand Swift and Pilgrim's Pride, among other subsidiaries. “It is not a matter of if but when,” Wesley Batista said of the unit's IPO plan. JBS Foods includes beef brand Swift and Pilgrim's Pride, among other subsidiaries.

JBS SA will proceed with plans to list a U.S.-based unit when market conditions allow, as the world's No. 1 meatpacker wrestles with a shareholder revolt over the role of the controlling Batista family in a massive graft scandal. In a conference call to discuss second-quarter results, CEO Wesley Batista said JBS Foods International Inc could be listed by the end of next year, once parent JBS finalizes 6 billion Reais (US$1.9 billion) in asset sales to cut debt and restore investor confidence.

 His remarks came after Brazil's development bank BNDES, whose investment arm is JBS' No. 2 shareholder, said earlier in the day that it would endorse a civil lawsuit against management and the billionaire Batista family. The lawsuit alleges that their role in a corruption scheme led to heavy losses in the value of JBS shares.

“It is not a matter of if but when,” he said of the unit's IPO plan. JBS Foods includes beef brand Swift and Pilgrim's Pride, among other subsidiaries.

BNDES Participações SA, which has about a 21% stake in JBS, will seek Batista's ouster at a Sept. 1 shareholder meeting. The lawsuit also targets his brother Joesley Batista, who is also a board member, former executives and J&F Investimentos SA, which oversees the family's 42% stake in JBS.

In May, the Batista brothers signed a plea deal with Brazilian prosecutors after admitting to bribing 1,900 politicians over the course of a decade. Since then the brothers have personally negotiated the short-term refinancing of 21 billion Reais in JBS debt and the sale of several assets.

Following the plea deal, JBS' board created a compliance division and hired a former U.S. Department of Agriculture official to bolster transparency.

JBS reported quarterly net income that was about half the amount forecast by analysts as net financial expenses jumped to their highest in five quarters on currency variations and adjustments in the fair value of derivatives.

Still, earnings before interest, tax, depreciation and amortization, or EBITDA, rose 30% from a year earlier to 3.7 billion Reais, beating an average estimate of 3.4 billion Reais.

According to Thiago Duarte, an analyst with Banco BTG Pactual, results reflected a strong performance of the U.S. beef business is booming as the outlook for Brazil-based units remain weak. Batista expects margins to return to historical double-digit levels.

JBS is on track to reduce debt faster than investors anticipated, he said. Net debt could drop to 3.5 times annual EBITDA by December, Batista said, noting that those debt levels had not been expected until the end of 2018.

The company is also in advanced talks to sell Moy Park Ltd in Europe and U.S. unit JBS Five Rivers Cattle Feeding LLC, following the sales of Argentine assets and a stake in dairy producer Vigor Alimentos SA, Batista said.

JBS has also hired lawyers to deal with a potential U.S. criminal investigation of its corporate practices, he said, adding that “none of our U.S. subsidiaries or executives committed any wrongdoing.”

Categories: Economy, Politics, Brazil.

Top Comments

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  • :o))

    REF: “Batista family, the main shareholders of JBS, face several civil lawsuits”:
    NOW, they are qualified to be a “Part of the Team”:
    http://www.chargeonline.com.br/php/DODIA//jbosco2.jpg

    Aug 21st, 2017 - 11:53 am 0
  • Jack Bauer

    No way that these crooks aren't going to prison.....besides taking flagrant advantage of privileged information, regarding the massive sale of their company's shares (while on the high) as well as the purchase of US$ 1 billion, the value of which they knew would skyrocket after and due to their handing over the audio recording (of Joesley's conversation with Temer) to the Feds, they have to settle the huge loans from the BNDES, under very suspicious conditiuons, not to mention the use of the money as well, for things other than the manifest purpose (to buy up the competition)....they caused hundreds of millions in losses to the BNDES, in a scheme for the bank to buy billions in shares, only approved because they were in cahoots with the bank's then president, Luciano Coutinho. And there are still all the accusations of bribery and corruption of politicians to answer to.

    Aug 22nd, 2017 - 10:12 pm 0
  • :o))

    @JB

    The heavy losses were already expected by the bankers & the “others”. As the partners in the crimes; they are not likely to penalize the “Crooked Brothers”. After all The Corrupt - the entrepreneurs, politicians, brokers & bankers - work as TEAM and benefit as a group. Expect them to continue with their misdeeds one way or the other [devious ways] FOREVER!
    REF:
    https://www.humorpolitico.com.br/wp-content/uploads/2017/08/Charge-21-08-2017.png

    Aug 22nd, 2017 - 10:38 pm 0
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