WH Group moves forward with Smithfield Foods US IPO plans
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USA – WH Group, the Chinese parent company of Smithfield Foods, has announced plans to list 20% of the US-based pork processor on a major American stock exchange.
Smithfield is a major supplier of fresh pork, poultry, and packaged meat products in both the United States and Europe.
The initial public offering (IPO) is expected to take place on the New York Stock Exchange or Nasdaq, as outlined in a filing with the Hong Kong Stock Exchange.
The IPO plan, first submitted in July, will see WH Group retain a controlling 80% stake in Smithfield after the transaction is completed.
WH Group stated that the spin-off would enable Smithfield to operate more transparently and highlight its value as an independent business.
The proceeds from the IPO are earmarked for infrastructure upgrades, automation projects, and increased production capacity at Smithfield.
Some of the funds will also be allocated to general working capital.
The offering will involve issuing new shares and/or selling existing shares.
Smithfield Foods, headquartered in Virginia and acquired by WH Group in 2013 for US$4.7 billion, will be valued at no less than its net asset value of US$5.38 billion as of September 30.
The final offering price will depend on prevailing market conditions.
Shareholders of WH Group will vote on the proposal at an extraordinary general meeting on December 6.
Smithfield, known for brands like Nathan’s Famous and Farmland, has recently undergone significant operational changes.
In July, the company announced the closure of a processing plant in Altoona, Iowa, resulting in over 300 job losses.
Last year, a pork-processing facility in Charlotte, North Carolina, was shuttered, affecting 107 positions.
Production from the Charlotte facility was shifted to the company’s Tar Heel plant in the same state.
In August, Smithfield separated its European business, which now operates as Morliny Foods.
The newly rebranded entity manages operations in countries including Poland, Romania, Hungary, and the UK.
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