Independência acquisition approved for JBS
05/02/2013
Assets previously run by Independência that will now transfer to JBS ownership include two tanneries, in Nova Andradina in Mato Grosso do Sul and Colorado d’Oeste in Rondonia.
A deal for JBS to complete the acquisition has been in the pipeline since at least April 2012. It has now received approval from the stock exchange to offer shares in JBS to help pay off debts owed to creditors by Independência.
Independência ran into financial difficulties in 2009 and has been working with its creditors since November that year to reach an agreement on a payment plan. Selling off the company’s assets, collectively or separately, was viewed from the outset as an important part of the plan to recover money owed to creditors. Cash would have been thre creditors’ first choice, but they will now have to settle for some equity in JBS too.
JBS values the deal on offer at more than $140 million.
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