Shuanghui Reduces Stake in Campofrio28 September 2013
SPAIN - As part of Shuanghui International's completion of its merger with Smithfield Foods, the formers has announced its intention to reduce its indirect stake in Campofrío Food Group, S.A. below 30 per cent.
Shuanghui International Holdings Limited and Smithfield Foods Inc. announced on 26 September the closing of their merger agreement. As a result, Shuanghui has acquired all the outstanding shares of Smithfield, owner of 36.99 per cent of the share capital of Campofrío Food Group, S.A. (Campofrío). Consequently, Shuanghui is now the indirect owner of Smithfield’s stake in Campofrío.
Following the completion of this transaction, Shuanghui has also disclosed on 26 September its intention to dispose the number of shares necessary to reduce its stake in Campofrío to below 30 per cent, within the three-month period beginning on the announced merger completion date (26 September 2013), in accordance with article 16.2 of Royal Decree 1066/2007.
Shuanghui further announced, in compliance with article 7.1 of the Royal Decree 1066/2007, that they will not, directly or indirectly, cast votes in excess of 30 per cent of Campofrío’s voting rights during such period.
Pedro Ballvé, Chairmain of Campofrío Food Group, commented: “Campofrío Food Group has long benefited from its relationship with Smithfield and now, as a result of Shuanghui’s entrance into Smithfield, we look forward to the opportunity to benefit from this new association with China’s leading meat company. China is the largest and fastest growing pork meat market in the world and therefore has been, and even now, will more likely be an important growth opportunity for Campofrío.”
TheMeatSite News Desk