BofA calls JBS plan to buy rest of Pilgrim's Pride attractive

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Summary · why it matters

JBS has announced a non-binding proposal to acquire the remaining 18% stake in its subsidiary Pilgrim's Pride in an all-stock transaction. Bank of America views the proposed deal as more attractive than JBS's 2021 attempt, which offered $26.50 per share in cash and was later raised to $28.50 before being rejected by Pilgrim's Pride's independent special committee. The bank said the new structure would let JBS consolidate Pilgrim's Pride without a cash outlay, improve cash flow retention, simplify its corporate structure, and concentrate share liquidity. Pilgrim's Pride shares rose 3.4% in premarket trading, while JBS edged 0.2% higher.

Impact on assets 4

Consumer Staples▲
JBS N.V.
JBS
▲ PositiveCapitalrelevance

BofA calls JBS's all-stock bid for remaining Pilgrim's Pride stake attractive, citing consolidation without cash outlay and improved cash flow retention.

Pilgrims Pride Corp
PPC
▲ PositiveCapitalrelevance

Pilgrim's Pride shares rose 3.4% on JBS's non-binding all-stock proposal to acquire the remaining 18% stake.

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Financials▲