JBS and Indonesia Wealth Fund Arm Agree $2.5 Billion Protein Venture
JBS will form a joint venture with Indonesia's Danantara, contributing its Australia and New Zealand operations to a $2.5 billion protein investment platform.
Brazilian meat packer JBS has signed an agreement to create a joint venture with PT Danantara (DIM), an investment arm of Indonesia's sovereign wealth fund. The partnership, announced in a securities filing on Friday, is aimed at developing protein production opportunities across Indonesia, Southeast Asia, Australia, and New Zealand.
The venture will be backed by a $2.5 billion investment from the Indonesian fund. JBS will contribute its entire existing operations in Australia and New Zealand to the new entity. Once fully funded, the venture plans to raise up to an additional $2.5 billion in debt financing.
Under the terms, DIM will make an initial payment of $800 million at closing, with the remaining capital to be deployed over a period of up to three years. For the first two years after closing, the investment funds are restricted to Indonesia's protein production sector.
Both parties have agreed to a mutual five-year lock-up period and intend to pursue an initial public offering (IPO) of the joint venture at a later stage. The completion of the deal remains subject to regulatory approvals and other customary closing conditions.