Brazil - More good news for JBS group24 Dec 2009
JBS SA, the world’s biggest beef producer, said Brazil’s national development bank may buy as much as $2 billion worth of the company’s convertible bonds as part of a plan to finance acquisitions.
BNDES, as the lender is known, committed to buying all the bonds that the company’s shareholders don’t purchase in an offer on the Brazilian market, Sao Paulo-based JBS said today in a regulatory filing. JBS also said its U.S. unit will raise at least $1.5 billion in an initial public offering.
JBS has expanded through about $9 billion of takeovers in the past three years, including the proposed takeover of Pittsburg, Texas-based Pilgrim’s Pride Corp. and Sao Paulo-based Bertin SA.
The 60-year real-denominated bonds may be converted into a 20 percent to 25 percent stake in JBS USA Holdings Inc. BNDES will buy the bonds through its BNDES Participacoes SA unit, JBS said.
JBS SA, the world’s biggest beef producer, jumped 3.9 percent to 9.45 reais after Standard & Poor’s said it may boost the company’s credit rating after it sells $2 billion in convertible bonds to finance two acquisitions.
The world’s biggest beef producer may have its B+ credit rating boosted after it sells $2 billion in convertible bonds to finance two acquisitions, S&P said yesterday. The company remains on CreditWatch with “positive implications,” said Marcelo Schwarz, an analyst at S&P, because of “the expected positive effects of pending transactions on JBS’s business profile.”
Gerdau SA, Latin America’s biggest steelmaker, climbed 5 percent to 29.13 reais. Sales of existing U.S. homes in November rose to the highest level in almost three years, figures from the National Association of Realtors showed today, as first-time buyers rushed to take advantage of a government tax credit and lower prices.
Source: bloomberg
