June 1, 2017

 

 

CDH Invesments, a Beijing-based alternative investment company, has sold its $730 million stake in China's pork producer, WH Group Ltd, Deal Street Asia reported.

 

Once possessing 30% share in WH Group, the firm now holds 3.24%. The sale of the stake is the third such sale CDH has done since August 2016, and reflects a likeliness that the company might exit its investment entirely.

 

In the latest stake sale, CDH has placed over 883.5 million shares in the Hong Kong-listed company representing approximately 6.03% of the total issued share capital of the company at a price of HK$6.55 (US$0.84) per share, WH Group said.

 

"As at the date of this announcement, the CDH shareholders are collectively deemed to be interested in 1,358,848,831 shares, representing approximately 9.27% of the total issued share capital of the company," WH Group's announcement stated. "Immediately upon completion of the placing, the CDH shareholders will be collectively deemed to be interested in 475,344,391 shares, representing approximately 3.24% of the total issued share capital of the company as at the date of this announcement."

 

Back in August last year, CDH trimmed its stake in WH Group by selling shares worth close to $1.2 billion.

 

In October, it sold 6.83% stake in the company for $806 million and reduced its stake from close to 20% to 13%.

 

CDH's investment in WH Group dates back to 2007 when it was known as Shuanghui International.

 

At that time, Chinese investors managed to raise a 30% stake in the company.

 

Since 2014, CDH's stake has been on the decline.

 

WH Group operates business through three main segments, namely packaged meat products, fresh pork and hog production.

 

- Deal Street Asia