Private equity group CDH to sell HK$6.48 billion worth of shares in pork producer WH Group

PUBLISHED : Thursday, 27 October, 2016, 8:31pm
UPDATED : Thursday, 27 October, 2016, 8:39pm

Private equity group CDH is selling 1 billion shares in WH Group worth up to US$836 million (HK$6.48 billion) through a share placement, according to a term sheet obtained by the South China Morning Post.

Shares in Hong Kong-listed WH Group, the world’s biggest pork producer, were offered in a range from $6.22-HK$6.48 per share, representing a 8.4 per cent to 4.6 per cent discount to Thursday’s closing price of HK$6.79, with a lock-up period of 9 months.

The sale accounts for 6.8 per cent of the company’s outstanding shares and is scheduled to take place on October 28. Morgan Stanley is the sole bookrunner.

CDH is the second-largest shareholder in WH Group with a 19.77 per cent stake, according to the Hong Kong stock exchange.

Shares of WH Group closed down 1.02 per cent on Thursday.

Smithfield Foods, its major asset and subsidiary, announced on Tuesday a 73 per cent jump in profit for the first nine months.