JBS shares surged by over 14.5% following news of progress on a U.S. listing. BNDESPar, JBS’s second-largest shareholder, will abstain from voting on this matter, allowing minority shareholders to decide. Analysts indicate that the removal of BNDES’ vote alleviates a major concern for the listing approval process.
Shares of Brazil’s JBS, a prominent meatpacker, experienced a significant surge of over 14.5% following news of its progress towards a potential U.S. stock listing. This increase positions JBS as the top gainer on Brazil’s Bovespa index, which remained largely unchanged. The company announced that its second-largest shareholder, BNDESPar, agreed to abstain from voting during an upcoming meeting focused on this proposed dual listing, allowing minority shareholders to have the final say.
This strategic decision by BNDESPar alleviates a significant hurdle in the listing process, boosting investor confidence. According to analysts at JPMorgan, their discussions with investors indicate that JBS is unlikely to encounter significant obstacles in obtaining approval for the listing due to BNDES’ abstention. JPMorgan highlighted, “We see this as a key positive news for the company, as it ensures the removal of a major overhang to the name.” Their analysis suggests optimism for JBS’s future as it navigates this important corporate milestone.
JBS’s shares saw a remarkable rise as it moves closer to a U.S. listing, supported by BNDESPar’s decision to abstain from voting in favor of minority shareholders’ opinions. Analysts expect a smooth approval process, reinforcing the positive sentiment surrounding JBS’s potential dual listing and signaling a promising outlook for the company in the market.
Original Source: www.tradingview.com
