JBS, a majority shareholder in the Pilgrim’s Pride Corporation (PPC), decided to withdraw its offer to buy the remaining shares of the company.
In a securities filing, JBS stated that it withdrew the offer to acquire all of the outstanding shares of common stock of Pilgrim’s that are not owned by JBS or its subsidiaries because it was unable to come to an agreement with the Special Committee of the PPC Board of Directors regarding the terms of the proposed transaction.”
In August 2021, the Brazil-based JBS, which at the time owned 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.
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.
Following the second refusal, JBS informed the special committee that it would continue to evaluate the situation and would consider whether to further revise the terms of its proposal, stating that it would give a final answer before the end of February.
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.
