Billion-Dollar Share Sale Threatens Rally for Meat Giant JBS
- BNDES stake sale is a large overhang for JBS, JPMorgan says
- Shares surged about 130% in past year as meat demand grows
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A plan by Brazilian development bank BNDES to sell its stake in JBS SA is tapping the brakes on the top beef supplier’s stunning rally.
BNDESPar, the development bank’s investment arm, has hired banks to sell shares in a potential secondary equity offering, JBS said this week. The lender currently holds a 21.3% stake in the meatpacker that’s worth about 15.6 billion reais ($3.7 billion), according to data compiled by Bloomberg.