CHINA: Meat processor WH Group details $5.3bn IPO
WH Group confirms listing
WH Group, the world's largest pork producer, has announced plans to list in Hong Kong in an initial public offering that could raise more than HK$42bn (US$5.3bn).
WH Group said today (15 April) it will sell 3.65m shares priced at HK$8-11.25. If demand is strong enough, the company has an option to increase the number of shares listed by 20%.
The Chinese company, which acquired US pork giant Smithfield Foods last year for US$4.7bn plus the assumption of debt, intends to use a significant proportion of the proceeds to pay down loans associated with the takeover.
In its prospectus, WH Group again outlined its strategy to import pig meat from the US to meet booming demand for pork in China. According to the firm, from 2010 to 2012 hog prices were 40% lower in the US than in China.
WH Group stated: "We plan to import into China safe, high-quality and cost competitive fresh pork from the US, which we believe will positively affect turnover and margins for our China operations."
The group also revealed that it made a net loss of $67m last year, reversing from a profit of $468m in 2012 and $188m in 2011. The loss was "primarily" the result of bonus payments to executives totalling $639m following completion of the Smithfield deal.
Final pricing is due to be announced on 22 April and shares will begin trading on 30 April.
Project Synopsis: MarketLine's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth act......
Spain-based meats group Campofrio has booked a half-year loss but claimed it was on the right track after seeing sales and EBITDA increase year-on-year....
The report presents detailed data on consumption trends in the Ambient Meat category in United States, analyzing consumption volumes and values. It also provides indispensable data on distribution cha...
WH Group, the world's largest pork processor, has relaunched plans for a listing in Hong Kong....
The report presents detailed data on consumption trends in the Chilled Raw Packaged Meat - Processed category in United States, analyzing consumption volumes and values at segment level. It also provi...
Synopsis The report presents detailed data on consumption trends in the Chilled Raw Packaged Meat - Processed category in United States, analyzing consumption volumes and values at segment level. It a...
- BRICs and beyond: Fonterra, Beingmate partnership
- Comment: Competition to rise on whey investments
- On the money: Mengniu hones in on "star" brands
- just-food interview: Agropur CEO Robert Coallier
- Consuming issues: The hunger-obesity paradox
- Valio lactose-free trucks stopped at Russia border
- Heinz halves sugar in ketchup launch
- H1 profits down at dairy group FrieslandCampina
- Bisco Misr says Kellogg eyeing majority stake
- Olam sells Cote d'Ivoire dairy to FrieslandCampina
- China - ISA Country Report
- New Strategies for offering Convenience in Food - targeting new occasions, best practice and new solutions
- Other Dairy in Russia
- David Chapman's Ice Cream Ltd in Packaged Food (Canada)
- Global Food and Grocery Retailing, 2013-2018: Market Dynamics, Retail Trends and Competitive Landscape