Sanderson Farms said it received an unsolicited offer to be acquired by Durational Capital Management for a price of $142 per share -- an offer that it declined.
Sanderson Farms issued a statement on the matter, following speculation that Durational Capital and Tyson Foods had together made an offer to acquire Sanderson Farms. The company, in its statement, clarified that Durational Capital did make the proposal, but that Tyson Foods was not involved.
The offer was declined, Sanderson Farms stated, because the price of $142 per share “very substantially undervalues
“After careful consideration, with the assistance of its financial and legal advisors, the board unanimously determined that the highly conditional and opportunistic proposal is not in the best interests of
“The board remains committed to enhancing value for all shareholders and believes it can generate significant additional value by continuing to execute its strategic organic growth plan, as discussed at the company’s recent Investor Day where it announced initiatives to increase production to serve the growing retail grocery market, including identifying and vetting a site for a new facility.”
The share price for Sanderson Farms saw some movement after the initial rumor of a takeover bid from Durational Capital and Tyson surfaced. According to a Seeking Alpha report, shares jumped to as high as $135 following the rumors, but later in the day retreated to $128.
Sanderson Farms observed its 70th year in business in 2017, having started as a feed and seed company. In 1987, it became a publicly traded company, listed on the Nasdaq exchange under the ticker SAFM.
Today, Sanderson Farms, headquartered in Laurel, Mississippi, ranks as the third largest poultry company in the United States and ninth in the world. In 2019, it processed 89.65 million pounds of ready-to-cook chicken on a weekly basis.
