The two largest shareholders of JBS have agreed to abstain from voting at an upcoming special meeting when a proposed dual listing for the Brazil-based meat and poultry company will be discussed.
A securities filing revealed that J&F Investimentos and BNDESPar on March 14 signed an agreement that they will abstain from voting on the matter, and that agreement is valid until December 31. In doing so, the vote would be left to other private minority shareholders of JBS.
J&F Investimentos is a holding company run by the Batista family, which founded JBS, named after family patriarch José Batista Sobrinho. His sons, Wesley Batista and Joesley Batista, are current members of the JBS board.
J&F Investimentos is the controlling shareholder, while BNDESPar is the largest minority shareholder of JBS, owning a 20.8% stake in the company.
The filing does not include information concerning when the upcoming special meeting of shareholders will be held.
JBS first proposed a dual listing in July 2024. It presently trades on the Brazil-based São Paulo Stock Exchange (B3), but it would also like to trade on the U.S.-based New York Stock Exchange (NYSE).
But the idea of dual listing has not been embraced by many in the United States, including members of the United States Senate and House of Representatives, and environmental groups like Mighty Earth and Rainforest Action Network. A special advocacy group called Ban the Batistas formed shortly after the dual listing was proposed. Arguements against the dual listing that have been frequently cited include allegations of corrupt business practices and poor environmental stewardship.
Members of the European Parliament have also voiced opinions against the dual listing.
JBS, according to the WATTPoultry.com Top Poultry Companies Database, is the world’s largest poultry producer. It is also the majority shareholder of U.S.-based Pilgrim’s Pride, the second largest poultry producer in the United States. Pilgrim’s Pride also has operations in Mexico and Europe and trades on the U.S.-based Nasdaq Stock Exchange.
JBS is also the world's 13th largest feed company and a major producer of beef, pork, plant-based proteins, lamb, aquaculture and leather. It has a presence every continent except Antarctica.
