SÃO PAULO, BRAZIL – Officials with JBS SA announced on Aug. 12, the approval by its board of directors a proposal to acquire the remaining ownership shares of its poultry and pork subsidiary, Pilgrim’s Pride Corp. The Brazilian company’s subsidiary, JBS USA, currently has an 80.21% ownership stake in Pilgrim’s, and JBS offered $26.50 per share with the intent of delisting it on the NASDAQ as a publicly held company based in the United States.
JBS became majority owner of Pilgrim’s Pride in 2009, with an $800-million investment that allowed the financially troubled poultry producer and processor to emerge from bankruptcy protection.
If its offer is accepted, Pilgrim’s would become a wholly owned subsidiary of JBS USA, according to the company.
“The proposed transaction aims, specifically, to simplify the corporate structure of JBS and its subsidiaries, maximizing administrative efficiencies, optimizing revenues and increasing even more its operational and strategic flexibility,” said JBS.
The deal is subject to approval by Pilgrim’s board of directors and shareholders of the remaining stock not currently owned by JBS.