April 3, 2014

WH Group plans US$6-billion IPO in Hong Kong after acquiring Smithfield

 

WH Group Ltd, the Chinese pork producer that bought US-based Smithfield Foods Inc. in late 2013, is planning an IPO in Hong Kong that will raise up to US$6 billion.

WH Group Ltd was recently renamed from Shuanghui International Holdings followng the acquisition - the biggest deal by a Chinese company for a US asset. It paid US$4.7 billion in cash and another US$2.4 billion in debt to finance the transaction. The listing, dubbed Hong Kong's largest since AIA's US$20-billion listing in 2010, is aimed at paying down debt on the US deal.

WH Group sells packaged ham, sausage and bacon, under its own brand Shuanghui (China), as well as Smithfield and Eckrich brands. Acquisition of Smithfield provided Shuanghui with access to pork at prices about half of those in China.