October 26, 2016 / 12:57 PM / 2 years ago

Brazil JBS scraps reorganization plan after shareholder opposition

SAO PAULO, Oct 26 (Reuters) - Brazil’s JBS SA, the world’s largest beef exporter, said on Wednesday it was cancelling a corporate reorganization plan due to opposition from one of its major shareholders, the government’s BNDESPar investment bank.

BNDES Participações SA, the investment arm of Brazil’s state development bank BNDES, exercised its veto power over the plan by JBS to move its international division headquarters abroad, the company said in a statement.

Common shares of the company tumbled 14 percent in early trading on the Sao Paulo stock exchange after the company announced the cancellation of the plan.

The company has scheduled a conference call with investors to discuss the decision at 1 p.m. local time on Wednesday (1500 GMT).

In May, São Paulo-based JBS said it would create JBS Foods International, an Ireland-based company whose assets will encompass global operations and those of Brazil-based food processor Seara Alimentos, Chief Executive Officer Wesley Batista told Reuters in an interview. (Reporting by Reese Ewing; Editing by Daniel Flynn and Bill Trott)

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