NB to buy back the JBS feedlot

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NB to buy back the JBS feedlot

Jul 14, 2017 | 21:53 1 An interesting news story on my inbox tonight...
NBI is buying back the Brooks feedlot for an apparent $50 million.

https://www.country-guide.ca/daily/n...b5ac6-88139201 Reply With Quote
Jul 15, 2017 | 08:51 2 Yep, saw that too. Wonder what the racket is this time? Sold the plant and the feedlot for $100 million and now buy the feedlot back for $50 million. Doesn't make sense. Reply With Quote
Jul 16, 2017 | 13:37 3 One minute NB is flatter than piss on a plate then they're buying back. WTF? The official story JBS needs to raise money to pay fines for bribery. Unofficially it's anyone's guess. Reply With Quote
Jul 18, 2017 | 23:53 4 From one scandalous owner to another and back again. Great. What next...... Reply With Quote
Jul 19, 2017 | 07:54 5 I was surprised that NB bought, but more so because the feeding industry is not high profit (although they are in a good run right now). I think there have been lots over the last 3 years that could have been bought for much less cost per head. As well, with cattle supplies approaching lows in Canada I can't see how they won't have to actually bid for the cattle to fill the lot, especially since they have a lot less market ownership than in the past. It will be interesting times. I do think that if we had lost that capacity it would not have been a good thing. Reply With Quote
Jul 19, 2017 | 12:05 6 Is it a case of JBS sub contracting their captive supply arrangement because they desperately need to raise some cash to pay their fines? I still wonder in NB ever paid for the plant/feedlot in the first place? If I remember right it was a $100 million deal when NB bought from Lakeside but they only had to put down $50 million ish with the rest to be paid at some future date. Then JBS bought it from NB for $100 million. Now NB are buying the feedlot back for $50 million. Would take a bit of forensic accounting to figure out what has really gone on in these deals. Reply With Quote