Brazilian meat giant JBS has entered a joint venture with Indonesia's sovereign-wealth fund to pursue investment opportunities in protein production. The agreement was struck through its subsidiary JBS USA with PT Danantara Investment Management, the financing unit of the fund, and will target Indonesia, the rest of South East Asia, Australia, and New Zealand. The venture will be set up by transferring JBS's full equity interests in its existing Australian and New Zealand businesses into a Dutch holding company, with DIM holding 25% by subscribing to shares worth $2.5 billion, initially contributing $800 million for a 9.64% stake and building up the rest over three years. Once fully invested, the joint-venture company plans to secure an additional $2.5 billion through a debt offer, taking total capital raised to $5 billion. For the first two years, DIM's contributions can only fund greenfield investments or acquisitions in Indonesia's protein production sector, after which remaining funds can be used more broadly across the region, and an IPO is possible six years after completion pending regulatory approvals.
JBS N.V.JBS forms JV with Indonesia's sovereign fund, receiving $2.5B investment and expanding in Asia.
Japan Business Systems, Inc.Sovereign fund invests $2.5B in JBS JV, gaining stake in protein production.
