J&F takes over management of Delta
J&F Participações SA, JBS’ parent company, has announced that on Monday (May 7) it signed a deal to take over management of Delta Construções SA. The Group says due diligence will be conducted by KPMG in the coming months. Only after the results of this investigation will an option to purchase be exercised.
The preliminary contract entitles J&F to replace the administrative structure at Delta, including the president, directors and members of the Board. This preliminary contract, which binds the parties and will be confirmed by J&F after due diligence, protects the new managers from any liability in relation to existing contracts until the audit has been completed.
The new president of the company will be announced in the upcoming days. "Our goal is to honor the contracts to be audited and keep on the more than 30,000 employees at Delta," says Joesley Batista, a shareholder on J&F.
Taking control of Delta does not involve payment to its former controllers. The audit of the assets and contracts will establish the value of the company, which will serve as the basis for calculating the purchase option. If exercised, the option provides that the proceeds from the distribution of future dividends by Delta itself will be used to pay for the company's assets. There will be no need for JBS to use its own, or third party resources, to finance the operation.
Information provided by J&S