JBS to sell off stake in dairy as part of efforts to raise $1.8bn

By Jim Cornall contact

- Last updated on GMT

JBS is planning to divest its 19.2% stake in Brazilian dairy company Vigor Alimentos.
JBS is planning to divest its 19.2% stake in Brazilian dairy company Vigor Alimentos.

Related tags: Milk, Butter

Brazilian food company JBS is divesting some of its assets, including a stake in a Brazilian dairy company.

The company is expecting to raise approximately R$6bn ($1.8bn), in addition to the R$1bn ($300m) already announced following the sale of the company’s operations in Argentina, Paraguay and Uruguay.

JBS is planning to dispose of its 19.2% stake in dairy company Vigor Alimentos S.A.

Other sales include the company’s stake in Northern Ireland’s Moy Park, and the Colorado, US, based Five Rivers Cattle Feeding and farms.

Vigor Alimentos brands include Leco, Vigor, Danubio, Amélia, Carmelita, Serrabella, Mesa and Jong. Products include cheese, yogurt, mayonnaise, margarine, milk, cream cheese and dairy beverages.

The Divestment Program is intended to reduce net debt and deleverage the company, strengthening its financial position.

The sale of assets is subject to approval from the board of directors and consent from the Brazilian government’s BNDESpar, a part of the state lender BNDES (National Bank for Economic and Social Development), as per the terms and conditions of the shareholder agreement.

Related topics: Manufacturers, Emerging Markets

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