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Shareholders of the WH Group, registered in Hong Kong, have approved a proposal to offer 20 percent of Smithfield Food equity in an initial public offering by a vote of 99 percent. The magnitude for acceptance of the resolution is not unrealistic given the disproportionate control exercised by founder and CEO Wan Long.
Smithfield Foods was acquired for $4.7 billion in 2013 by Shuanghui, the predecessor of the WH Group. The holding company values Smithfield assets at $5.4 billion with the intended IPO netting the company approximately $1 billion depending on share price and uptake.
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