JBS Secures Approval for Dual Listing on NYSE

The world’s largest animal protein producer, JBS, has received shareholder approval to move forward with its dual listing on the New York Stock Exchange (NYSE).

During an extraordinary general meeting held on Friday, shareholders voted overwhelmingly in favor of this strategic move.

Starting June 12, JBS stock will be available for trading on both the Brazilian Stock Exchange and the NYSE. This dual listing aims to attract a broader range of investors while bolstering capital for investment in growth and efficiency improvements.

In promoting the initiative, JBS highlighted that it would enhance confidence in corporate governance standards, potentially reducing capital costs and increasing stock valuations compared to U.S. competitors. Notably, the company’s share price has more than doubled since the listing plan was revisited nearly two years ago, following its initial postponement during the COVID pandemic.

Despite the overall support, the proposal has faced opposition from environmental groups and advocacy investors. Concerns center around past bribery scandals involving the Batista brothers and allegations linking the company to deforestation in the Amazon.

The proposal has also sparked debate among U.S. politicians, particularly after revelations regarding campaign contributions to former President Donald Trump. Additionally, some U.S. financial advisors have voiced concerns that the new share structure may dilute minority shareholders’ voting power. The plan introduces a dual-class share structure, granting the Batista family approximately 85% of the company’s voting shares, an increase from around 48% previously.

Furthermore, JBS’s plans involve transferring ownership of the Brazilian entity to a newly established Netherlands-based entity, which will be listed on the NYSE.