Beleaguered Brazilian meat giant JBS has announced it plans to sell its shareholding in Northern Irish poultry firm Moy Park as part of a R$7m (£1.68bn) divestment programme.

In a statement issued today, JBS proposed the sale of a further R$6bn of assets in addition to the R$1bn of divestments – concerning its operations in Argentina, Paraguay and Uruguay – it has already announced.

It said this new tranche of assets includes “its shareholding interest at Moy Park” as well as its 19.2% stake in Brazilian food company Vigor Alimentos and US-based Five Rivers Cattle Feeding assets and farms.

The sales will reduce the company’s net debt and its financial leverage.

Under-pressure JBS is looking to shore up its balance sheet after become embroiled in Brazil’s meat corruption scandal.

JBS was accused of bribing Brazilian government officials in relation to food inspections and the quality of meat it processed.

The group paid a R$10.3bn fine in relation to the scandal and its chiefs Joesley and Wesley Batista resigned their board positions in late May.

JBS admitted to paying R$600m to bribe nearly 1,900 officials.

JBS bought Moy Park from Marfrig for $1.5bn (at the time worth around £950m) in June 2015.

Marfrig had previously announced its intention to float Moy Park on the London Stock exchange in 2015 after also sounding out the market over a listing in 2014. 

Janet McCollum, Moy Park chief executive said today: “Earlier today, JBS S.A. announced a programme of divestment focused on strengthening JBS’s financial position through net debt reduction. The assets currently under consideration for sale include the Moy Park business.

“Moy Park is a successful and growing food business with a solid financial standing. I have no doubt that our success is due to the great strengths of this business – our exceptional people, innovation and performance. I also know that this will ensure our continued growth and stability well into the future.

“Our priority remains business as usual – delivering outstanding quality, innovation and service to our customers and consumers.”

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