WH Group seeks shareholder approval for Smithfield spinoff, NYSE listing
USA – WH Group, the China-based owner of Smithfield Foods, is asking its shareholders to approve a plan to separate its U.S. and Mexico operations.
The proposal includes listing Smithfield Foods on the New York Stock Exchange (NYSE) and selling a 20% stake in the company.
The plan values the spun-off entity at a minimum of US$5.38 billion, according to a company filing.
The listing aims to provide Smithfield with greater access to financial markets and more flexibility for potential acquisitions and investments.
If approved, the proceeds will be used to expand packaged meat production, upgrade infrastructure, and enhance automation capabilities.
Shareholders are scheduled to vote on the proposal on December 6, but the plan also requires clearance from U.S. regulators.
Smithfield, the largest pork producer in the United States, has recently implemented operational changes, including a reduction of hog production by 20%.
These adjustments are part of broader efforts to streamline its business.
The decision to spin off Smithfield comes amid heightened scrutiny in the U.S. over Chinese influence in the agriculture sector.
Despite China owning a small percentage of foreign-owned U.S. farmland, the issue has remained a contentious topic, particularly among Republican lawmakers.
It could gain further traction as Donald Trump prepares for a potential second term, with his nominee for Agriculture Secretary, Brooke Rollins, advocating for stricter controls on Chinese investments in U.S. agricultural assets.
WH Group initially acquired Smithfield in 2013 for US$4.7 billion, marking the largest-ever purchase of a U.S. company by a Chinese firm.
The spinoff, the company says, will improve transparency for U.S. investors and enhance Smithfield’s market reputation.
However, a U.S. listing could face challenges.
Similar efforts by Brazilian meat processor JBS to list shares in the U.S. have drawn criticism from environmental and corporate governance groups, citing potential risks associated with climate and investment practices.
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