News

Brazilian meatpacker JBS plans to sell $1.8 billion in assets

Troubles continue for Brazilian meatpacking company JBS SA amid the ongoing corruption probe.  Earlier this week a Brazilian judge blocked the company’s planned $300 million-dollar sale of a South American Unit to a rival company, Minerva SA, over concerns the sale would hinder the corruption investigation.

In a separate decision, Brazil’s attorney general has urged state auditors to freeze assets of JBS and the Batista brothers, who own more than 40 percent of JBS S.A.’s shares.  According to Brazilian news website, plus55, the attorney general’s office hopes that by freezing the assets it would guarantee Brazil’s National Development Bank an opportunity to recoup some of its approximately $850-million in losses from the fallout of the scandal.

JBS SA also announced this week plans to sell its Colorado-based Five Rivers Cattle Feeding.  The sale is part of its divesture program to reduce the company’s net debt and attempt to sell off $1.8 billion of assets to improve the company’s cash position following last month’s corruption settlement.

Five Rivers is the largest cattle feeder in the US and has close to a 1-million-head capacity.