JBS Offers 2.1 Shares for Each Pilgrim's Pride Share in Buyout Bid
PPC sits 20% above its 52-week low of $25.9.
Summary
JBS, which already owns about 82% of Pilgrim's Pride, has proposed to acquire the remaining 18% in a stock-for-stock deal. The offer is a fixed exchange ratio of about 2.1 JBS Class A shares for each Pilgrim's Pride share, based on Tuesday's closing prices of $13.66 and $28.49 respectively. If completed, Pilgrim's Pride shares would be deregistered and no longer trade on Nasdaq. The proposal is subject to approval by a special committee of independent directors and a majority of the minority shareholders. This follows a difficult Q2 for Pilgrim's Pride, with net income down 96% and weak chicken prices, making the buyout potentially attractive to shareholders seeking diversification into JBS's broader protein portfolio. The deal would also eliminate Pilgrim's standalone public company costs.
At the time of this announcement, PPC was trading at $31.00 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $6.8B. The 52-week trading range was $25.90 to $48.48. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.