Industrias Bachoco is preparing a voluntary public offering and has plans to delist the company in both Mexico and the United States.
The Mexico-based egg, broiler and pork production company issued a press release, stating that current shareholders of the family of Robinson Bours, the founder of Bachoco, informed Bachoco’s board that it intends to launch a voluntary public offering for up to all of the outstanding shares of the company, which amounts to about 27% of Bachoco’s outstanding capital.
The tender offer is expected to occur in both Mexico and the United States, with a purchase price of MXN81.66 (US$4.08) per share, a price that offers a premium of about 20%.
The tender offer will be subject to various corporate and regulatory requirements, including registration before the Mexican Securities Exchange Commission, filing with the US Securities and Exchange Commission and the authorization of the Board of Directors of Bachoco. Subsequent to the tender offer closing, the offeror intends to delist the outstanding shares on the markets where its shares are listed, including the New York Stock Exchange (NYSE) and the Bolsa Mexicana de Valores (BMV), and to deregister the shares under the U.S. Securities Exchange Act of 1934, as amended.
Industrias Bachoco is traded under the ticker IBA on the NYSE, and the ticker BACHOCO on the BMV.
Bours founded Bachoco in 1952 with a small farm of 1,000 birds in Ciudad Obregón with his brothers, Juan, Javier and Alfonso, where they produced eggs for sale. He died on August 13, 2020, at the age of 93.
Bachoco, according to the Poultry International Top Companies survey, is Mexico’s largest broiler producer and the ninth largest in the world. As an egg producer, Bachoco ranks as the second largest in Mexico and the 13th largest in the world. Its U.S. subsidiary, OK Foods, is the 17th largest broiler company in the United States.
Earlier this year, Bachoco closed on its acquisition of RYC Alimentos, a meat processor and distributor mainly of beef, pork, and chicken with national coverage that participates in all the distribution channels with fresh and value-added products. It also acquired Mexican pork company Sonora Agropecuarira in 2020.
