JBS proposes to buy all Pilgrim’s shares

Already the owner of more than 80% of Pilgrim’s Pride shares, JBS says becoming full owner would simplify its corporate structure.

JBS, the majority stakeholder of Pilgrim’s Pride Corporation, has offered to purchase all remaining shares of the company for a price of US$26.50 per share.

Brazil-based JBS announced its offer in a material fact published on the JBS Investor Relations webpage.

According to the Material Fact, if the offer is finalized, JBS would delist Pilgrim’s in the United States, where Pilgrim’s is traded on the NASDAQ exchange under the PPC ticker.

Presently, JBS holds 80.21% of PPC shares. If the proposal is accepted, the acquisition would be executed through one of JBS’ subsidiaries in the United States, and Pilgrim’s would become its wholly-owned subsidiary.

JBS stated that by purchasing all remaining PPC shares and delisting it in the United States, it would simplify the corporate structure of JBS and its subsidiaries, as well as maximize administrative efficiencies, optimize revenues and increase its operational and strategic flexibility.

The offer of $26.5 per share would be a 17% premium to the August 12 closing price.

The proposal is subject to the approval of a fully empowered special committee of independent and disinterested directors of the PPC Board of Directors, and the majority of aggregate voting power represented by shares of PPC common stock not owned by JBS and its subsidiaries.

Barclays is serving as financial advisor and Cravath, Swaine & Moore LLP is serving as legal advisor to JBS.

JBS became the majority stakeholder of Pilgrim’s Pride in 2009, following Pilgrim’s filing for bankruptcy. Since that time, Pilgrim’s has grown through the acquisition of Tyson Foods’ Mexican operations, GNP Company, Moy Park and Tulip, while its proposal to acquire Kerry Group’s Consumer Foods’ Meats and Meals business is pending. JBS previously owned Moy Park, prior to Pilgrim’s acquiring it in 2017.

Pilgrim’s Pride is the second largest poultry company in the United States, having processed 161.66 pounds of ready-to-cook chicken on a weekly basis in 2020. Fabio Sandri serves as its chief executive officer.

Par Roy Graber (13/08/2021)

Source : wattagnet.com

Photo : Benjamin Ruiz (tirée de l'article original)