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![]() Nov. 25, 2024 by Ann Reus, Feed Strategy WH Group plans to sell 20% of Smithfield Foods Inc. and has proposed an initial public offering (IPO) of Smithfield on the U.S. stock exchange. The move is expected to value Smithfield at no less than US$5.38 billion and aims to boost the company's access to capital markets, unlock value and give it more deal-making flexibility. The proposed IPO is scheduled for early 2025. Smithfield will remain a subsidiary of WH Group, and the proceeds from the offering will be strategically allocated to infrastructure investments, automation advancements and packaged meats capacity expansions. The pending deal requires approval by shareholders and U.S. regulators. An extraordinary general meeting to approve the spinoff is scheduled for December 6. The spin-off will establish clear operational boundaries between WH Group's China and Europe businesses and Smithfield's U.S. and Mexico operations. Smithfield's management will operate independently, supported by a separate board of directors to ensure focus on its standalone objectives. Over the past decade, Smithfield Foods has transformed its North American business by growing and significantly expanding the profit contribution from its higher-margin packaged meats segment while improving the cost structure and commodity market exposure in its fresh pork and hog production segments. To read the entire report click here. To read WH Group's statement click here. Tweet |
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