JBS sells Argentina, Paraguay, Uruguay businesses for $300m

Americas Companies

JBS sells Argentina, Paraguay, Uruguay businesses for $300m

JBS, the world’s largest meatpacker at the core of Brazil’s political scandal which has President Michel Temer on edge, said it was selling its subsidiaries in neighbouring Argentina, Uruguay, and Paraguay to its competitor Minerva for a total of $300m.

The proceeds from the sale will go to reduce JBS’s debt.

This is the first deal by the company since news broke last month that Joesley Batista, the company’s former chairman, secretly taped Mr Temer allegedly discussing bribes. JBS, which is now facing probes in Brazil for insider trading, has been dumped by investors, and downgraded by credit rating agencies.

Last month, J&F, the holding company of JBS, agreed to pay fines of R$10.3bn ($3.16bn) over 25 years, part of a plea bargain deal on a series of corruption investigations. That amount is to be adjusted annually by Brazil’s IPCA inflation index, and prosecutors project it would top R$20bn.

Analysts at Fitch, which downgraded the JBS’s credit rating profile to ‘BB’ from ‘BB+’ — warned that the plea-bargain deal is likely to increase the group’s reputational risk, reduce access to funding and hurt its ability to repay R$18.1bn in short-term debt.

“The magnitude of this agreement, which included admitting payments of bribes to various politicians, is likely to hurt JBS’s diversity of funding sources and is expected to result in the cancellation or delay of the initial public offer of its international unit,” they said.

Menciones: 

Analysts at Fitch: “The magnitude of this agreement, which included admitting payments of bribes to various politicians, is likely to hurt JBS’s diversity of funding sources and is expected to result in the cancellation or delay of the initial public offer of its international unit,” they said.

www.prensa.cancilleria.gob.ar es un sitio web oficial del Gobierno Argentino