
Fresh capital in amounting 902 million euros
The company expects that the unit price will from 23 to 27 USD.
This would allow group to acquire the equivalent of nearly 902 million in euros in fresh capital. The market value of Smithfield would increase to about 10.7 billion USD.
Smithfield Foods is one of the largest suppliers of fresh and packaged pork in the US. Since 2013 the company has belonged to China Group WH.
Chinese company parent WH Group under pression
Half of additional shares self Smithfield, a half of WH Group. May be listed on the Nasdaq Global Select Market.
Smithfield is under pressure in the US because of its Chinese owner. Through the acquisition Smithfield the Chinese mother company has become one of the largest land owners in US.
According to portal “Agriculture Dive” Smithfield is the owner of approximately 400 farms in US and has signed contracts with over 1900 farms.
Capital is to be invested in meat processing
In future however the company plans to reduce its involvement at production level, because margins from breeding cattle in the US
have declined.
Instead of this the company plans to invest new earned capital in meat processing, infrastructure and automation.
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