WH Group, the world’s largest pork producer, saw its shares plunge the most in more than two years on Friday morning [28 October 2016] after the company said private equity group CDH Investments planned to curb its stake by selling HK$10.6 billion [~US$1.37 billion] through a share placement…Full Article: South China Morning Post Oct 2016

Key Point

  • CDH Investments plans to reduce its stake in WH Group from 19.77% to 12.94%, and may lower it further to 8.18% at a later date.

ChinaAg Comments

  • In August 2016, CDH Investments announced plans to sell a 10.61% stake (~US1.19 billion) in WH Group. As a result of the sale, CDH Investments stake in WH Group dropped from 30.39% to 19.77%.
  • In September 2013, Shuanghui (WH Group) acquired Smithfield Foods (U.S. pork producer and processor) for HK$36.7 billion (~US$4.7 billion).
  • Founded in 2002 and headquartered in Beijing, CDH Investments is a private equity firm. As of early 2016, CDH Investments had invested in China Modern Dairy (HKG:1117), WH Group (HKG:0288), and China Mengniu Dairy (HKG:2319).
  • Founded in 1958 and headquartered in Luohe, Henan Province, WH Group (formerly Shuanghui Group – HKG:0288) is a leading Chinese pork processor.

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