Pilgrim's Pride Shares Rally on JBS Buyout Proposal
August 13 2021 - 10:25AM
Dow Jones News
By Colin Kellaher
Shares of Pilgrim's Pride Corp. rose more than 20% in early
trading Friday after majority owner JBS S.A. proposed shelling out
nearly $1.3 billion to buy the rest of the chicken processor.
Under the proposal, Sao Paolo-based JBS said it would pay $26.50
a share in cash for the 19.8% of Pilgrim's Pride it doesn't
already, a 17% premium to Thursday's closing price of $22.68 for
the Greeley, Colo., company.
Pilgrim's Pride shares were recently up 21.3% to $27.51, above
the JBS bid, indicating that investors may think a better deal can
be had.
But JBS, which in late 2009 acquired a majority stake in
Pilgrim's Pride under the U.S. company's bankruptcy reorganization
plan, said it is only interested in acquiring full ownership of the
second-largest U.S. chicken processor, and that it isn't interested
in selling its holdings.
The move by JBS comes after Cargill Inc. and
agricultural-investment firm Continental Grain Co. earlier this
week said they reached a deal to buy Sanderson Farms Inc., the
country's third-biggest chicken producer, for around $4.5 billion.
The JBS proposal values Pilgrim's Pride at roughly $6.46
billion.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
August 13, 2021 10:14 ET (14:14 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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