The company in Brazil, JBS SA, which is the largest global meat processor company reaffirms its intention, despite all the political, regulatory, and financial scandals that involved them in the past, to be included in the stock markets in the United States.
The scandals in which the company was involved linked it to food security and corruption crimes, according to the recent history of the company JBS. However, executives released a report which explained that for the current month JBS operations would comply with all the requirements of the audit and the Sarbanes-Oxley Act. This was assured by the company managers through a conference call with analysts.
According to this information, the company could be approaching one step closer to an IPO, Initial Public Offering, the US unit. All mentioned before is presented in the middle of a macroeconomic ecosystem where the largest economy in South America is on track to break the deadlock.
During last October 2017, the company postponed the IPO of $ 500 million of JBS Foods International after scandals in South America, as discussed by market analysts could prejudice the interest of investors, that according to commented by Jeremiah O’Callaghan, manager of the US JBS subsidiary.
O’Callaghan also said that the firm still faces the consequences of the agreements signed by the former president and CEO of the company, also he admitted that he had been bribed by dozens of politicians from Brazil.
In the other hand, the company JBS said it had an unexpected net loss during the fourth quarter, but added that the overall operating performance remained strong, which helped boost optimism about the potential come out on the stock market in The United States.
But JP Morgan analysts emphasize that the financial quality of cash flow and the division of meat in the North American country is also highly profit-making, as part of a report indicates that stocks could recover from poor performance that was recently produced.
According to the same company, the cash flow health allowed the rate reduction of net debt to EBITDA at 3.38 percent, this is the lowest in the industry.
While the Brazilian company Odebrecht, of construction works in the region, created a new business model for corruption among senior officials, not only in Brazil but throughout South America, JBS also did his bit in this movement.
JBS in 2017, due to the intervention had in the government of Dilma Rousseff with a coup that brought to power the current President Michel Temer, was sentenced to pay a fine with an outstanding amount.
As discussed last year by BBC, the corporation J&F, which owns the world largest beef processor JBS agreed to pay a fine of 3,200 million dollars to government.