(Adds details of ruling, share offer)
SAO PAULO, Dec 2 (Reuters) - Brazil securities regulator CVM on Tuesday lifted its suspension of the initial public offering for JBS SA’s processed food unit, JBS Foods, as long as the company holds off taking orders for investment until after Christmas.
CVM suspended the share offering Nov. 24, after the company’s chief executive breached regulations by making comments about the deal in a local newspaper.
An economic recession and an unpredictable presidential election have led several companies including JBS to delay or cancel planned share offerings this year, which has seen only one IPO so far in the Brazilian market.
JBS is looking to raise around 4 billion reais ($1.6 billion) from the IPO of JBS Foods, which accounted for nearly 10 percent of JBS’s $40 billion in revenue last year.
JBS Foods plans to list on the São Paulo Stock Exchange’s Novo Mercado, which has tougher governance standards and requires that a company list at least 25 percent of its shares.
$1 = 2.57 Brazilian reais Reporting by Aluisio Alves and Brad Haynes; Editing by Chris Reese and Gunna Dickson