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BRIEF: Smithfield parent makes trading debut in Hong Kong

August 6, 2014

The Virginian-Pilot

Aug. 06--Shares in Smithfield Foods Inc.'s parent company, the WH Group of China, soared in their trading debut in Hong Kong on Tuesday.

WH Group's sizzling start -- the stock closed 6.5 percent higher on a day when most other stocks fell -- came just three months after it scrapped plans for a $5.3 billion share sale.

With a more modest price and fundraising target, WH Group last week raised 15.9 billion Hong Kong dollars, or about $2 billion, by selling 2.567 billion new shares, or an 18 percent stake.

WH Group was created lastyear after Shuanghui Inter-national Holdings of China completed its $7.1 billion takeover of Smithfield, the biggest U.S. pork producer. That deal remains the largest-ever buyout of an American company by a Chinese one. WH Group plans to use the proceeds from the IPO to help pay down a $2.5 billion loan it used to help finance the Smithfield acquisition.


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Source: Virginian-Pilot (Norfolk, VA)

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