JBS shares soar over 14.5% as it approaches a U.S. listing. BNDESPar, its second-largest shareholder, will abstain from an upcoming vote on the dual listing, allowing minority shareholders to take the lead. Analysts believe this will facilitate the process, marking a positive shift for the company.
Shares in Brazilian meatpacking giant JBS (JBSS3) experienced a significant surge as the company progressed towards a U.S. listing. On Monday, JBS announced that its second-largest shareholder, BNDESPar, a government investment entity, agreed to abstain from voting during an upcoming meeting regarding the proposed dual listing. This abstention allows other minority shareholders the opportunity to influence the decision more freely.
Following this news, JBS shares soared by more than 14.5%, positioning it as the top performer on Brazil’s benchmark stock index Bovespa (IBOV), which remained relatively unchanged. Analysts from JPMorgan have reported discussions with investors that suggest the company is unlikely to encounter substantial obstacles in securing approval for the listing, especially with the BNDES abstaining.
JPMorgan remarked, “We see this as a key positive news for the company, as it ensures the removal of a major overhang to the name.” This highlights the consensus among investors regarding the favorable implications of the listing for JBS’s prospects.
In summary, JBS’s advancement toward a U.S. listing has positively impacted its stock performance, with significant shareholder support as evidenced by BNDESPar’s decision to abstain from the vote. This strategic move not only boosts investor confidence but also alleviates potential hurdles in the approval process, confirming market optimism regarding JBS’s future.
Original Source: www.tradingview.com
