BNDES trims JBS stake, plans further sales
Bank sees meatpacker as consolidated, eyes cash for new investments
21 May 2025
2 minute read
By: Brazilian state development bank BNDES will keep selling shares in JBS after reducing its stake in the meatpacking company to about 18.2% from 20.8%, Reuters reported, citing two sources familiar with the transaction on Tuesday.
The meatpacker's shares are trading at an attractive price for the bank to sell them, the sources said, noting that the lender now sees JBS as a consolidated firm and believes it has fulfilled its role in it.
BNDESPar, the bank's investment arm, has been a key JBS stakeholder since 2007, when it helped bankroll a buying spree that saw it acquire US brands such as Swift and chicken processor Pilgrim's Pride, investments touted as part of a strategy of creating "national champions."
JBS unveiled in a securities filing on Tuesday that BNDESPar had cut its stake in the firm from April 23 to Tuesday. According to the sources, the share sales hit their largest daily volume on Tuesday.
Sao Paulo-traded shares of JBS have jumped about 22% this year, supported by the company's plans to be primarily listed in New York, with Brazilian depositary receipts traded in Sao Paulo.
BNDES does not intend to exit its stake in JBS immediately and does not have a deadline to conclude the move, the sources said, adding that the share sales would depend on market conditions.
"By selling the shares, BNDES can strengthen its cash flow and make more investments and disbursements," one of the sources said.
