Investors had been agitating for Smithfield (NYSE:SFD)
management to “do something” to increase the value of their shares, and
their wishes were answered in spades on Wednesday. The largest pork
producer in the U.S. announced that it had accepted a bid to be acquired
by China's Shanghui International in an all-cash deal that awards a
pretty hefty multiple to this protein producer.
The Deal To Be...
If the deal goes through as announced, Smithfield investors will
receive $34 in cash for each share they own. That works out to a 31%
premium relative to Tuesday's close and just barely less than the
all-time high for the stock.
To read more, please follow the link:
http://www.investopedia.com/stock-analysis/052913/smithfield-get-its-deal-surprising-bidder-sfd-tsn-yum-mcd-seb.aspx
Showing posts with label Shanghui. Show all posts
Showing posts with label Shanghui. Show all posts
Wednesday, May 29, 2013
Monday, January 16, 2012
Investopedia: Zhongpin Could Be Hog Heaven For Investors
Although the scandals surrounding small Chinese stocks in 2010 and 2011 never crept as high as the huge companies like Petrochina (NYSE:PTR) or Lenovo (OTCBB:LNVGY.PK), Zhongpin (Nasdaq:HOGS) did come in for closer scrutiny and doubt. Although history suggests investors can never completely trust any company, hog producer Zhongpin may yet be a sound strategy for benefiting from improving standards of living in the PRC.
The Number Four Player in the Protein of Choice
Zhongpin is the fourth-largest pork processor/packer in China, but holds less than 1% share of the hog slaughter market and the larger players will scarcely familiar to most readers in North America (Shanghui, China Yurun, and People's Food). With the top five producers holding less than 10% share, the Chinese market is a far cry from the highly concentrated U.S. market that is largely dominated by companies like Tyson (NYSE:TSN), Smithfield (Nasdaq:SFD), Seaboard (AMEX:SEB), Swift (owned by Brazil's JBS) and Cargill, where the top four companies have over 60% of the market.
Please read more here:
http://stocks.investopedia.
The Number Four Player in the Protein of Choice
Zhongpin is the fourth-largest pork processor/packer in China, but holds less than 1% share of the hog slaughter market and the larger players will scarcely familiar to most readers in North America (Shanghui, China Yurun, and People's Food). With the top five producers holding less than 10% share, the Chinese market is a far cry from the highly concentrated U.S. market that is largely dominated by companies like Tyson (NYSE:TSN), Smithfield (Nasdaq:SFD), Seaboard (AMEX:SEB), Swift (owned by Brazil's JBS) and Cargill, where the top four companies have over 60% of the market.
Please read more here:
http://stocks.investopedia.
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