Shuanghui International Holdings Ltd. announced plans to sell some of its shares of Campofrio, the largest producer of processed meats in Europe.
Shuanghui inherited 37% of the company following its acquisition of Smithfield Foods Inc. 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, Va.-based pork processor announced that the companies completed the acquisition. As of the close of the 26 September 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 $34 per share in cash. The company will be a wholly-owned subsidiary of Shuanghui International operating as Smithfield Foods.
More than 96% of Smithfield Foods shareholders voted to approve the acquisition during a special meeting of shareholders held 24 September in Richmond, Va. The votes cast in favor of the deal represented approximately 76% of Smithfield's total outstanding shares of common stock as of the record date of the meeting.
Source: Shuanghui International Holdings Ltd.