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BNDES Plans to Sell Shares of JBS and May Raise Up to R$ 10 Billion. Operation Takes Place Amid a Record Rise in the Company’s Shares. Despite Rumors, the Bank Has Not Yet Officially Confirmed the Sale. Analysts See the Moment as Ideal for Divestment.
The National Bank for Economic and Social Development (BNDES) is about to cause quite a stir in the financial market, but the details of this maneuver remain a mystery.
Investors are eager to know how the state bank, known for its substantial investments in large Brazilian companies, will proceed.
The expectation is that a billion-dollar operation involving JBS shares, one of the world’s largest food companies, is about to happen. But why so much secrecy and suspense surrounding this operation?
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According to the NeoFeed portal, BNDES intends to sell a significant portion of its stake in JBS, potentially raising between R$ 8 billion and R$ 10 billion.
The decision to divest some shares comes at a time of rising prices for the company, which has seen an impressive appreciation of 78.58% over the past twelve months.
This has caused JBS’s market value to reach R$ 71.73 billion on the B3, further solidifying its position as a giant in the industry.
Gradual Reduction and Significant Profits
Since 2021, BNDES has been progressively reducing its stake in JBS. In December of that year, the institution sold R$ 2.66 billion in shares of the company.
Shortly thereafter, in February 2022, another R$ 1.9 billion was sold. Now, the bank seems determined to end a cycle of investments that began in 2003, with total investments amounting to R$ 8.1 billion until 2011.
The profits obtained over this period have been substantial: through share sales and dividend receipts, the bank has earned R$ 14.7 billion from 2007 to 2023.
According to NeoFeed’s report, BNDES has reportedly hired Citi and Santander to lead the operation.
However, the institution is still in negotiations with other financial entities to form the syndicate that will conduct the share sale.
Despite the interest and the behind-the-scenes movements, the bank has not officially confirmed the carry-through of the “follow on.”
Speculations and Uncertainties
BNDES’s stake in JBS, which was 22.17% in 2020, is currently at 20.81%. This number may see a significant reduction if the new share offering is confirmed.
Sources connected to the bank told NeoFeed that “shares can be sold at any moment, but the deal has not yet been finalized.”
This means that the operation is not 100% guaranteed, although everything indicates that it should happen soon.
After the article was published, BNDES issued an official statement denying any immediate intention to sell.
“BNDES is unaware of any initiative related to the sale of its stake in JBS through public offering and disavows any supposed financial institutions mandated to speak on its behalf,” the press office stated.
The statement, however, was not sufficient to calm the market, which remains alert to the bank’s next steps.
Rise in Shares and Opportunities
The appreciation of JBS shares, which reached R$ 32.34 last Friday, September 20, places BNDES in a strategic position to make a profitable sale.
The moment is seen as ideal by many analysts, as the company continues to expand its operations globally and shows robust financial results.
The bank, which faced harsh criticism in the past for its investments in large companies, seems determined to capitalize on this positive phase to the maximum.
The BNDES’s historical profits with JBS are also impressive. Despite the controversies and mistrust surrounding the relationship between the bank and the company, the superlative gains are undeniable.
Over the years, the bank not only recovered the invested amount but also secured a profitability that few would have predicted at the start of the partnership.
Challenges and Future Divestments JBS
Despite the expectations surrounding the share sale, BNDES has been cautious in announcing its next steps.
The institution, which still has relevant stakes in other large companies such as Petrobras and Eletrobras, is expected to take a similar approach with these assets in the future.
The divestment strategy initiated in recent years appears to aim at greater liquidity and diversification of the bank’s portfolio.
The market continues to speculate on what BNDES’s next divestments will be. However, regardless of the criticisms and controversies, the fact is that the institution plays a crucial role in the financing and leveraging of large Brazilian companies, contributing to the country’s economic development.
What do you think, should BNDES continue reducing its stake in large companies like JBS, or would it be wiser to maintain these strategic investments? Share your opinion in the comments!
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