JBS (JBS) will form a joint venture partnership with PT Danantara Investment Management through the sale of a 25% stake in its Australia and New Zealand businesses, the company said in a stock filing Friday.

JBS said its subsidiary, JBS USA Holding Lux, entered into the partnership with Indonesia's sovereign wealth fund to pursue greenfield, brownfield, and acquisition opportunities in the protein production sector across Southeast Asia, Australia, and New Zealand.

Before closing, JBS will contribute its entire equity interest in its Australia and New Zealand businesses to a wholly owned Dutch company that will later become the joint venture.

PT Danantara will subscribe for a 25% stake for $2.50 billion in the Dutch company, including an initial payment of $800 million at closing for an approximately 9.64% stake, with the remaining investment to be made over the following three years, JBS said.

Following the full investment, the joint venture is expected to raise up to $2.50 billion in external debt financing, bringing its total capital raise to $5 billion, the company said.

The joint venture will be governed by a board of seven directors, including two executive directors nominated by JBS and five non-executive directors, three nominated by JBS and two by PT Danantara.

Shares of JBS were up more than 3% in pre-bell activity on Friday.