Shareholders approve Shuanghui's $4.7b acquisition of Smithfield Foods

At a special meeting of Smithfield shareholders held yesterday, more than 96% of the votes cast were voted in favor of the transaction, which represents approximately 76% of Smithfield's total outstanding shares of common stock. The transaction, valued at $7.1 billion including debt, is expected to close by September 26

Under the terms of the agreement Smithfield shareholders will receive $34 per share in cash for each share of Smithfield common stock that they own. Upon closing of the transaction, Smithfield's stock will cease to be publicly traded. Smithfield will continue to operate under its existing brand names as a wholly-owned subsidiary of Shuanghui.

"We are pleased with the outcome of today's vote and thank all of our shareholders for their support," said C. Larry Pope, president and chief executive officer of Smithfield in a statement. "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."

Shuanghui's controversial bid had initially stirred concern about US food safety and the protection of indigenous technologies and intellectual property, however, the deal was cleared by The Committee on Foreign Investment in the United States (CFIUS) earlier this month.

CDH and Goldman first invested in Shuanghui in 2006, committing $250 million to the parent group, which gave them an approximately 35% indirect interest in Henan Shuanghui. The following year CDH and Goldman restructured their holding - reducing their interest in Henan Shuanghui to 15% - and investors including Temasek Holdings and New Horizon came in. Goldman was said to have divested part of its interest to CDH in 2009.

According to Shuanghui's 2012 annual report, CDH owns 33.7% of Shuanghui International, while Goldman, New Horizon and Temasek have 5.18%, 4.15% and 2.76%, respectively. Entities controlled by Shuanghui International own 73.16% of Shenzhen-listed Henan Shuanghui.

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• Topics
• North America
• Greater China
• Consumer
• Buyouts
• Goldman Sachs
• USA
• Temasek Holdings
• China
• CDH Investments Management
• Consumer
• New Horizon Capital