Sanderson Farms registers to sell up to US$1 billion in shares
Sanderson Farms Inc. announced that it would file a shelf registration with the Securities and Exchange Commission to register for possible future sales of up to US $1 billion in stock.
Joe F. Sanderson Jr., chairman and CEO of Sanderson Farms said the purpose of the filing is to make available to the company, shares that could be used in connection with future acquisitions and other strategic opportunities as they may present themselves.
According to Christopher Bledsoe, an analyst with Barclays Capital Equity Research, Sanderson's move puts the company in an opportune position to participate in industry consolidation.
He said the registration announcement is meaningful in terms of magnitude and timing, with potential positive implications for Sanderson as well as other industry players.
The company registered for possible future sales of its common and/or preferred stock that may be offered in amounts and prices to be determined by the board of directors when the shares are issued.