JBS must take corrective action after securities regulation violation - CMV

JBS must take corrective action after securities regulation violation - CMV

The Brazilian securities regulator, the CMV, has suspended JBS's proposed float of its domestic consumer food unit for 30 days after the group's CEO made public comments on the group's plans in the Brazilian press.

In a statement released yesterday (24 November), the CMV said that JBS CEO, Wesley Batista, violated securities regulations by making comments to newspaper Estado de S.Paulo concerning on the IPO. Participants are prohibited from speaking to the press on the matter until after the float has closed.

According to the CVM, if the issue is not "properly corrected" the offer registration application will be rejected.

Representatives for JBS were unavailable for comment at time of press.

The Brazilian meat giant wants to raise around BRL4bn (US$1.57bn) by floating its Brazilian consumer foods business, JBS Foods. The unit generated close to 10% of JBS's BRL40bn revenue last year.