September 30, 2013

Shuanghui International Holdings Ltd. plans to sell some of its shares of Campofrio, the largest producer of processed meats in Europe.

Following its acquisition of Smithfield Foods Inc., Shuanghui inherited 37% of Campofrio. Under Spanish securities law, Shuanghui has less than three months to take over the company or sell enough shares to reduce its stake in Campofrio to 30%.

The Smithfield, Virginia-based pork processor announced that the companies completed the acquisition. As of the close of the September 26 trading day, Smithfield shares will no longer be listed on the New York Stock Exchange. Under the terms of the agreement, each Smithfield shareholder will receive US$34/share in cash. The company will be a wholly-owned subsidiary of Shuanghui International operating as Smithfield Foods.

"Our partnership ensures the stability of our business for all our stakeholders, while simultaneously unlocking exciting opportunities for growth in the large and rapidly growing Chinese pork market. This is a new era for Smithfield, but one that will continue to be defined by the strictest adherence to the highest standards of food safety and quality, an unwavering commitment to giving back to our communities and acting as a responsible global corporate citizen," said C. Larry Pope, Smithfield CEO and president.

During a special meeting of shareholders held September 24 in Richmond, Virginia, more than 96% of Smithfield Foods shareholders voted to approve the acquisition. The votes cast in favour of the deal represented approximately 76% of Smithfield's total outstanding shares of common stock as of the record date of the meeting.

"Today marks an exciting new chapter for both of our proud organisations as we formally begin a partnership that will benefit our customers, employees, producers and partners," said Wan Long, Shuanghui International chairman.