CDH Investments Offloads $1.2 Billion Stake in Pork Producer WHby
CDH sold 1.55 billion shares at HK$5.95 apiece, below the midpoint of a marketed range, WH Group said in a Hong Kong stock exchange filing Thursday. The price represents a 5 percent discount to the stock’s last close. The shares were earlier offered at HK$5.90 to HK$6.05 each, according to terms for the deal obtained by Bloomberg on Wednesday.
The maker of Smithfield ham and Farmland bacon has risen 45 percent in Hong Kong trading this year, outpacing the 4.1 percent rise in the benchmark Hang Seng Index. CDH cut its stake after WH Group reported net income in the first half of the year rose 27 percent excluding some fair-value adjustments.
CDH offered 880 million shares to institutional investors through a share placement arranged by Morgan Stanley, according to Thursday’s filing. The investment firm also sold 292 million shares to a holding company for WH Group Chairman Wan Long and company employees, while another 382.9 million shares went to other investors, the filing shows.