In this file:
mulls Brazil's JBS bid, Exame says; stock jumps
… According to Exame, which did not say how it obtained the information, Mubadala is building a bidding consortium "in complete secret"…
· Mubadala not considering JBS stake bid, source says
… Mubadala Development Co PJSC is not considering arranging partners to make a bid for control of JBS SA, the world's largest meatpacker, a person with direct knowledge of the fund's strategy said on Friday…
· Container dearth hits Brazilian exports
... Brazil’s two biggest food companies, JBS and BRF, which together make up almost 50 per cent of the country’s reefer cargo volumes, have been so successful in negotiating rates down that carriers have moved to more profitable countries...
· Brazil's President Vows to Sue JBS Owner Over `Criminal' Label
· Brazilian President accused of heading nation’s biggest mafia
· JBS hires audit to defend prosecution of profit with delinquency [With Google Translate]
· J & F Confirms Signing According to Chilean Agreement for Sale of Eldorado [With Google Translate]
Mubadala mulls Brazil's JBS bid, Exame says; stock jumps
via Nasdaq - June 16, 2017
SAO PAULO, June 16 (Reuters) - Shares of JBS SA <JBSS3.SA>
reversed losses on Friday after Brazilian financial magazine
Exame reported that Mubadala Development Co PJSC is arranging
partners to make a bid for control of the world's largest
According to Exame, which did not say how it obtained the
information, Mubadala is building a bidding consortium "in
complete secret." The report came a month after members of the
billionaire Batista family, who control about 42 percent of JBS,
made a plea deal linked to a corruption scandal in their native
Shares of JBS rose as much as 5.9 percent...
Mubadala not considering JBS stake bid, source says
via Daily Mail (UK) - 16 June 2017
ABU DHABI, June 16 (Reuters) - Abu Dhabi sovereign wealth fund Mubadala Development Co PJSC is not considering arranging partners to make a bid for control of JBS SA, the world's largest meatpacker, a person with direct knowledge of the fund's strategy said on Friday.
The person requested anonymity to speak freely about the issue. Earlier in the day, Brazilian financial magazine Exame said Mubadala, which has several logistics and infrastructure investments in Brazil, was forming a consortium "in complete secret" to buy the 42 percent controlling stake that Brazil's billionaire Batista family has in JBS...
Container dearth hits Brazilian exports
Ship owners chasing higher rates are diverting reefer containers to other parts of the region
By Maura Maxwell, Fruitnet.com
16th June 2017
A shortage of refrigerated containers is causing a build up of fruit and other perishable products at Brazilian ports according to a report in ShippingWatch.
It says carriers including Maersk, MSC and Hamburg Süd have relocated containers other ports in the region where rates are higher. The most severe shortage is in the states of Rio Grande do Sul and Santa Catarina, home to some of the country’s biggest fruit producers.
Warehouses at the Port of Santos is São Paulo meanwhile are reported to be at full capacity.
“The situation is very severe in many places, with filled warehouses and where companies offering tempered storage of frozen goods such as pork and beef, chicken, fish, juice, fruit, and other items can no longer accept any more goods,” a source told ShippingWatch.
“We’re also seeing examples of meat producers having to reduce their production as there are no more storage facilities and containers available.”
The source said the shortage of containers was causing losses to the whole supply chain and seriously harming the Brazilian economy.
A wave of consolidation among the major carriers has reduced the service options for exporters. At the same time, Brazil’s two biggest food companies, JBS and BRF, which together make up almost 50 per cent of the country’s reefer cargo volumes, have been so successful in negotiating rates down that carriers have moved to more profitable countries in the region like Peru, Chile, Ecuador and Costa Rica...
Brazil's President Vows to Sue JBS Owner Over `Criminal' Label
Batista refers to Temer as head of criminal organization
Temer calls Batista ‘notorious bandit’ of Brazil’s history
by Fabiana Batista
June 17, 2017
The public battle between Brazil President Michel Temer and the world’s largest meat producer sharpened when JBS SA owner Joesley Batista was quoted as saying Temer heads the country’s “largest and most dangerous criminal organization.”
Temer’s office said Saturday that the president will sue Batista in response to accusations made in an interview with the weekly magazine Epoca. The JBS owner said Temer used to brazenly ask for money for himself and his allies. “He’s not a ceremonious guy with money,” Batista was quoted as saying.
Those were just the latest turns in the sprawling corruption probe, known as Operation Carwash, that’s implicated many of the country’s business and political elite and helped bring on the 2016 impeachment of Temer’s predecessor, Dilma Rousseff. The nation’s Supreme Court has authorized an investigation into Temer on accusations of passive corruption and obstruction of justice.
The latest chapter has featured the emergence of testimony in which Batista and his brother Wesley describe a wide-ranging scheme of illicit payments, and a recording of Temer appearing to approve a payment of hush money to former Lower House speaker Eduardo Cunha. J&F Investimentos SA, which controls assets including JBS, agreed in May to a leniency deal that calls for it to pay a large fine while avoiding prosecution for bribery...
... Cunha, who’s currently in jail, used to refer to Temer as his superior, Joesley Batista said to the magazine. “Temer is the head of the House’s criminal organization,” he said, naming other politicians from the group...
Brazilian President accused of heading nation’s biggest mafia
19 Jun. 2017
Brasilia | A Brazilian businessman said in an interview that President Michel Temer heads the country’s biggest and most dangerous criminal organisation.
Temer “is the head of the criminal organisation that operates in the Chamber (of Deputies),” Brazil’s lower house of Congress, Joesley Batista, one of the owners of multinational meatpacking giant JBS, said in the interview on Saturday.
Batista said a mafia of politicians continually demanded that he pay bribes and make illegal donations to election campaigns; in return, his companies received favours or were allowed to operate unhindered, reports Efe news.
He added that the group’s leaders included Temer and Eduardo Cunha, a former lower-house speaker and one of the highest-profile politicians to be sentenced to prison in the sprawling Car Wash investigation into a $2 billion bribes-for-inflated contracts scheme centred on state oil company Petrobras.
“The one who’s not in prison (among the group’s members) is in (the presidential palace) Planalto. That group is very dangerous. You can’t argue with them,” Batista said in the interview.
He said Temer called him every time he needed campaign donations for his Brazilian Democratic Movement Party (PMDB) and its political allies or money for personal reasons.
“Temer is very direct in (asking for money). He’s not a person who’s careful with that,” Batista said.
Batista said the payments were necessary because the group had control over offices that were crucial to JBS’ operations, including agencies linked to the Agriculture Ministry.
The illegal funding initially was channeled through lobbyist Lucio Funaro and then subsequently through Cunha.
Batista, who has entered into a plea deal with prosecutors, returned to Brazil last week after having been authorised to leave the country due to alleged threats against his family...
JBS hires audit to defend prosecution of profit with delinquency
Decision was taken at a board meeting last week, column says
Noticias ao Minuto (Brazil)
June 18, 2017
With Google Translate
JBS will conduct an external audit to analyze data on the company's stock purchase and foreign exchange operations to defend itself against allegations that it made a profit after the disclosure of the allegation that President Michel Temer committed.
The information is from the Panel column, from the Folha de S. Paulo newspaper website, this Sunday (18).
The decision was made following a board meeting last week. The group also removed Wesley Batista from overseeing the company's furniture and currency markets.
According to the newspaper, the businessman Joesley Batista wants a request for an exception to the truth. With the instrument, he can prove his statements requesting even the breach of the confidentiality of anyone who lodges a criminal complaint against him.
J & F Confirms Signing According to Chilean Agreement
for Sale of Eldorado
The possibility of selling J & F assets has aroused interest
For RENATA PRANDINI, WITH AGENCIES (Brazil)
via Correio Do Eestado - 18 JUN 2017
With Google Translate
J & F, a company of brothers Joesley and Wesley Batista, confirmed yesterday the signing of a confidentiality agreement with Arauco on the negotiations between the two groups involving the pulp producer Eldorado, which has a plant in Três Lagoas.
"J & F Investimentos confirms the signing of a confidentiality agreement with Arauco for the analysis of an eventual transaction involving Eldorado Brasil Celulose SA," the company said in a statement to the press.
Before, Arauco had already communicated the signing of the confidentiality agreement, in the wake of the Valor Econômico news that the Chilean group had made an offer in excess of R $ 11 billion, including debt, to buy Eldorado.
The two brothers are personally negotiating the sale of part of their assets. With the exception of Vigor, which has Bradesco and Santander hired by the family, investors interested in other business of the company - which include from Alpargatas to energy assets - have spoken directly with the two controllers of the group.
Sources close to the JBS heard by the report said the Batista brothers did not rule out selling a portion of the group's assets in the United States, where meat operations are concentrated.
But the goal, according to these same people, is to preserve as much as possible this business division, which gave rise to the company and accounts for more than 80% of the group's revenues, from R $ 170 billion in 2016.
Since the Batista brothers' allegations surfaced a month ago, JBS's market value fell 30 percent to $ 18 billion, according to a survey by Economática.
Since the award-winning donations and the possibility of selling J & F assets, the pulp mill has attracted interest from competing companies. However, the Chilean company, which operates in the wood sector in Brazil, would have come out ahead, offering more than R $ 11 billion for the plant.
Celulose Arauco y Constitución said in a material fact that it is evaluating Eldorado, "a company dedicated to the production of pulp through its most important asset, that is, a plant with a production capacity of 1.7 million tons per year Of short-fiber cellulose ".
"The company has preliminarily entered into a confidentiality agreement in order to explore a possible investment in Eldorado."
The company submitted the proposal to Joesley and Wesley Batista, owners of J & F, on Wednesday and hired counsel from the Mattos Filho and Simpson Thacher & Bartlett law firms.
Two days later, Eldorado Brasil sent a material fact to the Securities and Exchange Commission (CVM), where it informs that its parent company, J & F, has signed a confidentiality agreement with Arauco "to analyze an eventual transaction involving the company." J & F Investments said it did not comment on the matter.
Inaugurated in December 2012, Eldorado Brasil had an initial investment of R $ 6.2 billion, of which R $ 2.7 billion from the National Development Bank (BNDES) - BNDES financing for the Batista company is the target of Today. Initial capacity was 1.3 million tons of pulp per year.
However, this production already reaches 1.7 million / year. In May, the plant reached a mark of 156,384 tons of pulp produced, at a daily average of 5,045 tons of pulp.
In the first five months of 2017, the factory had produced 730,000 tons of the product, according to the company, 12% more than in the same period of 2016. The factory has an estimated debt of R $ 8 billion.
In a statement, Fibria, which inaugurates its second production line in September, denied interest in the competing factory. "Fibria does not intend to buy Eldorado and does not comment on market rumors."
Eldorado Brasil, however, is not the only company to be on the Batista negotiating table. The owners of the JBS group are directly negotiating the sale of part of their assets.
With the exception of Vigor, which has Bradesco and Santander hired by the family, investors interested in other family businesses, ranging from Alpargatas to energy assets, have done as the Chilean company and spoke directly with the two controllers of the group.
The family is in a hurry to sell. In addition to having about R $ 3 billion in short-term debt, the company would have to raise funds to pay for the leniency agreement, which closed at R $ 10.3 billion.
Only in Mato Grosso do Sul, in addition to the pulp mill, do the Baptist have eight beef slaughterhouses, one of them (in Coxim) closed, the other with temporarily suspended activities, as well as plants for poultry slaughter.
Sources linked to the businessmen also said that the possibility of selling assets in the United States, where meat operations are concentrated, is not ruled out.
But the goal would be to preserve as much as possible this business division, which gave rise to the company and corresponds to 80% of the group's revenues, from R $ 170 billion in 2016.
Since the Batista brothers' allegations surfaced a month ago, JBS's market value fell 30 percent to $ 18 billion, according to a survey by Economática. (With information of Valor Econômico and Estadão)