GREELEY – JBS SA, the Brazilian parent company of Greeley-based JBS USA, has withdrawn its offer to purchase all outstanding shares of Pilgrim’s Pride Corp. (Nasdaq: PPC), the Greeley-based poultry processing company.
“JBS has withdrawn its offer after being unable to reach an agreement with the special committee of the PPC board of directors regarding the terms of the proposed transaction,” JBS said in a press release.
JBS, which owns 80% of Pilgrim’s Pride, had offered to acquire the remaining outstanding shares last fall.
Pilgrim’s Pride said in a filing with the U.S. Securities and Exchange Commission that it rejected an offer from JBS in November of $28.50 per share, “finding that the offer significantly undervalued public stocks of PCP”.
Pilgrim’s Pride said it weighed several factors in rejecting the offer, including its acquisition of the Kerry Consumer Foods Meats and Meals business, the positive performance of the Pilgrim’s Pride business in the fourth quarter of 2021, various efficiency initiatives and other factors.
“Since communicating its revised $28.50 offer on November 15, 2021, JBS has made no further proposals to the Special Committee and has not entered into any negotiations with the Special Committee,” according to the Pilgrim’s Pride SEC filing. “The Special Committee is not aware of any material facts relating to the performance of PPC that are inconsistent with the conclusions of its due diligence review, and the Special Committee has not been informed by JBS of any reason for the withdrawal of its proposal relating to the performance of PPC or its prospects.
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