Nearly 20 years after going public in Brazil and just over a year after moving its primary share listing to New York, JBS is changing how it issues securities in the Brazilian market.

Debt offerings will no longer be issued by JBS S.A. and will instead come from Netherlands-based JBS N.V.

The company said in a filing with the Securities and Exchange Commission of Brazil (CVM) on Monday (Sept. 21) that shareholders approved keeping JBS S.A. registered solely under category B, which allows companies to issue securities such as debt but not publicly traded shares in Brazil.

Local issuance

JBS S.A. will still be able to issue securities such as debentures in Brazil, but those offerings will be restricted to professional investors rather than the broader investing public.

Brazilian Depositary Receipts, or BDRs, will continue to trade in the local market.

JBS N.V. currently has two classes of shares. Class A shares, equivalent to common stock, trade on the New York Stock Exchange and serve as the underlying shares for the company’s BDRs.

Class B shares are held exclusively by J&F, the holding company controlled by the Batista brothers. Each Class B share carries the voting power of 10 Class A shares.

J&F move

The change comes two days after J&F said it had applied to register as a publicly held company in Brazil under category B.

J&F also controls companies including Âmbar Energia, Eldorado and Flora. The registration would allow the group to issue debt securities in Brazil, something it does not currently do.

The move reflects J&F’s transformation from a holding company into an operating company, as Valor reported Monday.

Leadership change

The restructuring of JBS’s Brazilian issuance comes as the company prepares for a leadership transition that will put a member of the Batista family back at the helm.

Wesley Batista Filho is set to take over as CEO in January 2027, replacing Gilberto Tomazoni.

In Monday’s filing, JBS said that “completion of the registration cancellation is subject to the satisfactory conclusion of the CVM’s review of the request, which is expected to take place in accordance with the terms and deadlines established under CVM Resolution 80.”

*By  Nayara Figueiredo and Camila Souza Ramos— São Paulo

Source: Valor International

https://valorinternational.globo.com/