Alexa
  • Directory of Taiwan

Poultry producer Pilgrim's Pride says it won most of rival Gold Kist shares

Poultry producer Pilgrim's Pride says it won most of rival Gold Kist shares

Poultry producer Pilgrim's Pride Corp. said Thursday that it received 88.9 percent of shares in Gold Kist Inc. with its $1.1 billion (euro840 million) tender offer and expects to complete the acquisition of its rival in early January.
Pilgrim's Pride, the No. 2 U.S. poultry producer, offered $21 cash per share to Gold Kist stockholders.
Pilgrim's Pride said the deal would make it the nation's largest chicken producer by pounds, with nearly 25 percent of the market, compared with 21.4 percent for Tyson Foods Inc., based on January 2006 sales.
Still, Tyson, which also has large beef and pork operations, has $26 billion (euro19.7 billion) in annual revenue, dwarfing the $7.4 billion (euro5.6 billion) by Pilgrim's Pride and Gold Kist.
The initial offer and withdrawal-rights period ended Wednesday. About 45.3 million shares of Atlanta-based Gold Kist stock, the third-largest U.S. chicken producer, were tendered, according to Pilgrim's Pride.
Pittsburg-based Pilgrim's Pride launched an offer for all remaining shares, which expires Jan. 5.
O.B. Goolsby Jr., the president and chief executive of Pilgrim's Pride, said the combined company would have a broad and growing customer base and a balanced portfolio of fresh chicken and prepared products.
Pilgrim's Pride, with 56,500 employees, made a hostile bid for Gold Kist in August after overtures to the smaller company's management failed to produce a deal. Pilgrim's Pride first offered $20 per share, a 62 percent premium over Gold Kist's stock price the day its rival launched a takeover bid.
Gold Kist, which has about 16,000 employees, initially said it wanted to remain on its own, but on Dec. 3 the boards of the two companies reached a sale agreement for $21 per share.
In addition to Gold Kist's equity value of $1.1 billion, Pilgrim's Pride will assume about $144 million (euro109 million) in debt.
In midday trading Thursday on the New York Stock Exchange, shares of Pilgrim's Pride rose 46 cents to $29.71. Gold Kist shares rose a penny to $21 on the Nasdaq Stock Market.


Updated : 2021-06-13 01:40 GMT+08:00