Smithfield Shareholders Approve $7.1 Billion Buyout

Shareholders of Smithfield Foods (UNKNOWN: SFD.DL2  ) today overwhelmingly approved a takeover by China-based logistics, food, and flavoring provider Shuanghui International Holdings for $34 a share, Smithfield said in a statement today. The vote follows the May 29 announcement of the planned acquisition. Including the assumption of debt, the deal values Smithfield at $7.1 billion, making it the largest takeover of a U.S. company by a Chinese firm.

After tallying today's votes from approximately 76% of its shareholders, Smithfield said that "more than 96% of the votes cast were voted in favor of the transaction." The $34-per-share deal is equal to a 31% premium based on Smithfield's May 28 closing price of $25.97 a share, the day before the announcement that Shuanghui would acquire Smithfield.

Commenting on the vote, Smithfield President and CEO Larry Pope said:

This is a great transaction for all Smithfield stakeholders, as well as for American farmers and U.S. agriculture. The partnership is all about growth, and about doing more business at home and abroad. It will remain business as usual -- only better -- at Smithfield, and we look forward to embarking on this new chapter.

Following the closing of the deal, which is expected to happen on Thursday, Smithfield will become a wholly owned subsidiary of Shuanghui and will no longer be a publicly traded company.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2652709, ~/Articles/ArticleHandler.aspx, 10/1/2016 6:23:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 21 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
SFD.DL2 $0.00 Down +0.00 +0.00%
Smithfield Foods,… CAPS Rating: **