A special committee that formed to review JBS’ proposal to purchase the shares of Pilgrim’s Pride Corporation that it does not currently own for the second time says JBS’ proposal is insufficient.
In August, the Brazil-based JBS, which owns a 80.21% stake in Pilgrim’s Pride, offered to buy the remaining shares at a price of US$26.50 per share. About one month later, the Pilgrim’s Pride Board of Directors appointed the special committee to review JBS’ proposal.
According to a press release from Pilgrim’s Pride, the committee in late October informed JBS that it would not support the proposal unless it significantly increased its proposed purchase price. On November 15, JBS offered to increase its purchase price by $2 per share, which also didn’t seem like an adequate amount for the committee, which consulted with financial and legal advisors to reach the decision.
JBS has since informed the special committee that it is continuing to evaluate the situation and will consider whether to further revise the terms of its proposal. It expects to provide a response to the Pilgrim’s Pride committee by the end of February.
“There can be no assurance that JBS and the special committee will reach an agreement with respect to the JBS proposal, or that a transaction will be completed,” the press release stated.
When JBS announced its proposal to buy the remaining shares of Pilgrim’s Pride, it stated its intent to delist the company in the United States, where Pilgrim’s is traded on the NASDAQ exchange under the PPC ticker.
JBS became the majority stakeholder of Pilgrim’s Pride in 2009, following Pilgrim’s filing for bankruptcy. Since that time, Pilgrim’s has grown through the acquisition of Tyson Foods’ Mexican operations, GNP Company, Moy Park, Tulip and Kerry Group’s Consumer Foods’ Meats and Meals business. JBS previously owned Moy Park, prior to Pilgrim’s acquiring it in 2017.
