JBS proposes purchasing remaining shares of Pilgrim’s Pride

Purpose of transaction would be to delist company from being publicly traded.

August 16, 2021

1 Min Read
JBS proposes purchasing remaining shares of Pilgrim’s Pride

JBS S.A. recently announced that its board of directors has approved the submission of an offer letter to Pilgrim's Pride Corporation (PPC) for the acquisition of all outstanding common shares issued by PPC for the price of $26.50 per share. The purpose of the estimated $1 billion transaction is to delist the company from being publicly traded.

PPC, a publicly-held company listed on the NASDAQ and headquartered in the U.S., raises broilers and hogs and sells fresh, frozen, and value-added products under a number of brands in North America, Mexico and Europe. JBS currently holds 80.21% of PPC's shares through its subsidiaries after becoming the majority owner in 2009 through an $800 million investment.

The proposal is subject to (a) the approval a fully empowered special committee of independent and disinterested directors of the PPC Board of Directors, advised by independent legal and financial advisors and (b) the approval of holders of a majority of the aggregate voting power represented by shares PPC’s common stock not owned by JBS and its subsidiaries.

If accepted, the acquisition will be executed through one of JBS’ subsidiaries in the U.S. and PPC would become its wholly-owned subsidiary.

The proposed transaction aims, specifically, to simplify the corporate structure of JBS and its subsidiaries, maximizing administrative efficiencies, optimizing revenues, and increasing even more its operational and strategic flexibility.

JBS said it will keep its shareholders and the market informed of any developments related to the subject matter of this material fact.


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