JBS mulls reverse merger
According to Bloomberg, Brazilian beef producer JBS may turn its $7.1 billion Pilgrim’s Pride unit into the parent of US operations in a so-called reverse merger after postponing an initial public offering of JBS USA.
“I would prefer to do the IPO of the U.S. unit, but a reverse merger of JBS USA and Pilgrim’s is possible,” Chief Executive Officer Joesley Batista told reporters in Sao Paulo.
These bonds can be converted into JBS stock if the JBS USA deal fails to go public by 2011. JBS has indicated that it might execute a reverse merger with its Pilgrim's Pride unit, a company it acquired out of bankruptcy in 2009.
JBS reported a 52.5% increase in revenues for its second quarter compared with the same period a year ago following its mergers with Bertin and Pilgrim's Pride.
Growth was seen in all regions as well as across its beef, pork and chicken businesses.
