After four months of efforts, Shuanghui international acquisitions in the United States to succeed.
September 26, 2013, Shuanghui International Holdings Limited ("Shuanghui International" below) and Smithfield Foods Inc. (hereinafter referred to as "Smithfield", NYSE: SFD) announced that it has completed the earlier announced strategic merger; previous September 24, Smithfield general meeting of shareholders approved the acquisition of Shuanghui international program, the total purchase price to reach $ 7.1 billion, including $ 4.7 billion and $ 2.4 billion stock acquisition debt. So, the United States Shuanghui international mergers and acquisitions, are so easy to succeed, but also implies a kind of behind the story?
Four months ending cross-border mergers and acquisitions
Closing the merger is completed, the United States marked the international Shuanghui pigs received successfully.
According to a strategic merger agreement, Smithfield common stock held by shareholders will receive $ 34 per share purchase price, Smithfield will be a wholly owned subsidiary of Shuanghui International, continue to operate its existing brands Smithfield Foods, its common stock until after the close of September 26 will not be listed on the New York Stock Exchange.
In this regard, the international chairman of the Bandung Shuanghui said, "Since our partnership officially concluded, which will benefit our customers, employees, manufacturers and other partners. We look forward to the two sides play their respective advantages, including Shuanghui huge in China Smithfield distribution network and leading production and safety system, consumers around the world to provide safe and high-quality products. "
Prior to the September 24, Smithfield announced that shareholders overwhelmingly voted to approve the proposed merger Shuanghui international strategic. In Smithfield EGM held on the same day, more than 96 percent of the votes to support the transaction.
"After shareholder approval, the deal would have meant little suspense, the highest level between the two sides to sign a document together, announced the completion of the transaction." September 26, a source close to informed sources Shuanghui international interview with this reporter interview, said that the delivery be considered after successful completion of the acquisition, no additional follow-up procedures, because just completed acquisitions, specifically how to integrate the two sides, it is unclear, because the acquisition of a work in progress.
May 29, 2013 four months ago, Shuanghui International and Smithfield joint announcement the day: they have entered into a definitive merger agreement, Shuanghui International will acquire all the issued shares of Smithfield, valued at approximately $ 7.1 billion (approx. combined 43.7 billion yuan), which includes an international commitment Smithfield Shuanghui net debt.
After the merger, Shuanghui International promised to maintain the same Smithfield operations, management change, same brand, same headquarters, promised not to lay off workers, not to close the plant. And we will continue to work with US producers, suppliers, farm.
The proximity Shuanghui International, informed sources believe, just four months, Shuanghui International to complete such a big deal, the speed really fast, in fact, the most important driving force or commercial factors, both sides are up to consider the business of the future cooperation are more optimistic, so there are power; secondly, the meat industry is not as sensitive to oil, mining, quick to rise to the national strategic level, while food companies cooperation, the two sides have their own strengths and complement each other on both sides The market has a great advantage.
Syndicated funds credited into account
Department of International perfect ending of the merger, without the support of the Bank of China.
According to reporter understood that the US local time at 10:00 on September 26, on time delivery of the $ 4 billion syndicated loan led by Bank of China, marking the successful completion of the merger Shuanghui most important financing link, then Shuanghui International and Smithfield formally signed entry into force of the agreement deals.
It is reported that Bank of China has played an important role in the acquisition project, back in early March this year after the Bank of China was informed that merger information, the rapid mobilization of the world's elite forces, to provide full financial support for the project. At the same time, the Bank of China in accordance with Shuanghui trading needs and market conditions, to design a financing program set up syndicated loans.
Subsequent August 30, 2013, Shuanghui International announced by the eight international and local banks syndicate signed a $ 4 billion syndicated loan agreement, the money will be used to acquire US company Smithfield, this syndicate loans include a $ 2.5 billion three-year loan, and a $ 1.5 billion five-year loan.
According to reporter understanding, the banks participating in the syndicated loan include the Bank Bank, Rabobank, Calyon, DBS Bank, the French Foreign Trade Bank, Royal Bank of Scotland, Standard Chartered Bank and Industrial and Commercial Bank of China (Asia).
In this regard, Bandung, said: "The syndicated loan market has made a good response, banks are Shuanghui expressed great confidence, which makes us much encouragement, Shuanghui International will continue to work to establish an international business platform, the money will further enhance our financial strength. "
A foreign merger
In fact, the reason for the successful completion of Shuanghui international mergers and acquisitions, there is a very important reason is inextricably linked with their foreign identity and cosmopolitan background of the shareholders, to be exact it is a pile foreign mergers and acquisitions.
A top three domestic meat business executives told reporters that if the Chinese companies to acquire US companies is very valuable, and Shuanghui former Chinese companies from their shareholders now suggests that, not long ago Chinese companies Shuanghui , this time overseas mergers and acquisitions in the end will have any impact on the Chinese meat industry, is not to say, it remains to be seen.
Public information display, Shuanghui International's full name is "Shuanghui International Holdings Limited", mainly engaged in investment, international trade and diversification of business, is a privately held company located in Hong Kong, the main business includes food and logistics, is China's largest meat listed companies Shuanghui Development (000895) controlling shareholder, is also the controlling shareholder of Shuanghui Development Shuanghui Group, the largest shareholder, now actually in control of Shuanghui International, Shuanghui management.
According to this reporter learned that, at present, the shareholding structure of Shuanghui development that Shuanghui Group holding 60.24 percent, 13.02 percent stake Alex Roth, the public holding 26.74%, but Alex Roth 100% holding Shuanghui Group, Glorious Link International Corporation 100% of the shares held by Alex Roth Shuanghui international and 100 percent holding Glorious Link Internati-onal Corporation's stock.
So, Shuanghui international equity structure and how is it? The latest data show that 16.58% stake Shine CDH, CDH ShineⅡ holding 9.20%, 4.75% stake ShineⅢ CDH, CDH ShineⅣ holding 3.17% male domain company holding 30.23%, Yun Feng investment holding 10.57 %, the Kuok Group holding 7.40%, Yunchang company holding 4%, holding 5.18% Goldman Sachs Strategic Investment, New Horizon shareholding 1.73%, 2.42% stake New Horizon Ⅱ, Temasek holding 2.76%. Among them, the Xingtai Group 100% holding company of male domain.
In fact, many Chinese enterprises in the United States rejected the merger have similar experiences, in fact, Shuanghui International since announced acquisition of US companies after this, various "spoiler" to continue.
September 26, Shuanghui Group, a top executive told this reporter, Bandung himself to the United States, many years ago, Bandung and Smithfield executives have interactive, and there is also cooperation, relations are pretty good , which is the basis of this acquisition, the transaction is completed, the next will definitely expand areas of bilateral cooperation.
"Shuanghui Although it is backed by foreign companies, but still is considered internationally funded enterprises is, if the merger poor management, they will certainly affect the image of Chinese enterprises' transnational amalgamation." Ministry of Commerce Institute of Foreign Trade Deputy Director Zhang Li analysis, the Shuanghui international merger and acquisition is complete, but does not mean the business aspects after the merger will be successful, after the two sides still a lot of work needs to be done, Smithfield capital after completion of the acquisition, under international control Shuanghui, Regardless of its success or failure will give Chinese enterprises to provide a background of experiences and lessons from this sense significance of this acquisition.
Disclaimer: This information and views represent the views of only the author, China M & A network does not make any guarantee as to its accuracy, completeness and reliability. Please use caution readers and are solely responsible. Any organization or individual use of this site shall comply with the relevant Chinese laws and this statement.
