JBS Shares Surge Amid Progress Towards U.S. Listing

Shares of JBS have surged over 14.5% following news of its progress towards a U.S. listing. The company’s second-largest shareholder, BNDESPar, has agreed to abstain from voting, leading to optimism among minority shareholders. Analysts from JPMorgan believe this move should alleviate previous concerns regarding the listing process.

Shares of JBS, a prominent Brazilian meatpacking company, have surged following news of progress towards a potential listing in the United States. JBS announced that its second-largest shareholder, BNDESPar, which is a government investment entity, has agreed to abstain from voting during an upcoming meeting concerning the proposed dual listing. This decision effectively transfers the final say to minority shareholders.

In response to this development, JBS’s shares rose by over 14.5%, making it the top gainer on Brazil’s benchmark stock index, the Ibovespa (IBOV), which remained stable overall. Analysts from JPMorgan indicated that discussions with investors suggest minimal obstacles ahead for the approval of the listing, especially with BNDES out of the equation.

JPMorgan stated, “We see this as a key positive news for the company, as it ensures the removal of a major overhang to the name.” This optimism reflects JBS’s potential for growth and confidence among investors.

The recent developments regarding JBS’s potential U.S. listing have resulted in a significant increase in its stock value. The abstention of BNDESPar from voting provides a favorable outlook for minority shareholders, facilitating the decision-making process toward the listing. Additionally, analysts project a positive trajectory for JBS, minimizing any uncertainties as highlighted by JPMorgan.

Original Source: www.tradingview.com