SAO PAULO (Reuters) — JBS SA, the world’s largest meatpacker, is resuming a plan to raise $1.8 billion US from the initial public offering of its pork, poultry and food-processing operations in Brazil as early as next month, a source with direct knowledge of the deal said last week.
Sao Paulo-based JBS put off the deal in June, when slumping confidence drove potential investors away from Brazil, sources told Reuters at the time.
JBS and banks want to kick off new investor meetings in New York and other cities soon, said the source, who sought anonymity since the deal is in the works.
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The transaction could be priced after the second half of October, between the first and second rounds of Brazil’s presidential election, the source added.
“Timing will be crucial for the deal,” the source added.
JBS declined to comment, citing a quiet period.
The unit, which will be spun off under the name of JBS Foods, accounted for nearly 10 percent of JBS’s $40 billion in revenue last year. JBS aims to list the unit in the Sao Paulo Stock Exchange’s Novo Mercado chapter, where corporate governance rules are the toughest.
Last year, JBS acquired rival Marfrig SA’s Seara pork and poultry operations for $2.7 billion and assets from Canada’s XL Foods and Brazil’s Massa Leve for a combined $210 million.
