RIO DE JANEIRO, Nov 24 (Reuters) - Brazilian securities regulator CVM said on Monday it had delayed the initial public offering of JBS’s food unit in Brazil by up to 30 days after the company’s chief executive breached regulation by making comments about the deal in a local newspaper.
CVM said that if the error was not rectified the request for the public offering would be rejected.
JBS, a food processor, is looking to raise an estimated 4 billion reais ($1.57 billion) from the IPO for JBS Foods.
CVM said in a statement that JBS’s CEO, Wesley Batista, had made comments about the offering to newspaper Estado de S.Paulo, violating regulation which prohibits participants talking to the media about an offering before it has closed.
JBS Foods accounted for nearly 10 percent of JBS’s $40 billion in revenue last year. JBS aims to list JBS Foods on the São Paulo Stock Exchange’s Novo Mercado, which has tougher corporate governance standards and requires that a company list at least 25 percent of its shares. (Reporting by Stephen Eisenhammer; Editing by Leslie Adler)