Vigor Holders May Go Back to JBS

The controller of Brazil’s Vigor Alimentos plans to conduct a share repurchase offer allowing shareholders to exchange Vigor shares for JBS shares, JBS and Vigor say, effectively reversing the process by which the dairy company was spun off from the Brazilian meatpacker last year. FB Participacoes will offer a one-for-one swap for all of Vigor’s outstanding shares, plus a small premium to account for differences in dividends. In last year’s exchange, JBS shareholders were offered the chance to swap into Vigor shares as a part of the spinoff. However, the process has not resulted in the expected liquidity for Vigor shares. Timing has not been set for the new offer, which received the blessing of minority holder BNDESPar. Vigor pledges to continue with its strategic growth plan, and will fund itself using the Brazilian capital markets in the “short and medium term.” JBS exchanged 118m shares in the process last year, less than the 149.7m it had targeted. The operation was worth about $456m-equivalent, and Bradesco advised JBS.