Batista family will pay 100% of the penalty
JBS Operations Unaffected
SÃO PAULO, Brazil, May 31, 2017 (GLOBE NEWSWIRE) -- The Board of Directors of JBS S.A. (BVMF:JBSS3) was informed this morning that J&F Investimentos SA, its 42% shareholder, has reached an agreement in principle with the Brazilian Federal Prosecutor’s Office to settle the financial penalty aspect of the leniency agreement reached in respect of several matters that had been the subject of ongoing investigations.
The financial penalty will be paid by J&F Investimentos, which is majority owned by the Batista family, who have said they will bear 100% of the cost of the settlement. It will have no impact on the operations of the JBS group. The penalty is R$10.3 billion (~ US$3.2 billion), adjusted for inflation and payable over a period of 25 years.
“This settlement is an important step forward as it removes uncertainty for our customers, suppliers, team members, shareholders and lenders. We can now focus on the future,” said Tarek Farahat, chairman of JBS S.A. “We are committed to taking the appropriate steps to implement best-in-class governance and compliance standards, and are focused on getting back to business as usual, continuing to provide the excellent products and services our customers and consumers have come to expect and enjoy, further developing our relationships with our suppliers, working closely with our 235,000 team members worldwide, and delivering strong financial performance for our shareholders.”