Archive for the ‘MEAT’ Category

Cashing in on pork chops: Chinese supplier Wan Long to become billionaire on share sale

Thursday, July 31st, 2014


pork chop meat image www.foodpassions (2)

Meaty business: Wan Long’s stake in the business is valued at more than $US1 billion.

Wan Long, who runs the world’s biggest pork supplier, will become a billionaire when his company WH Group completes an initial public offering in Hong Kong.

WH Group is set to raise at least $US2.05 billion ($2.2 billion), based on data in its share sale prospectus. The company received enough orders for its sale of 2.57 billion shares at HK$6.20 each, people with knowledge of the matter said.

Wan owns 9.1 per cent of the Luohe, China-based meat packer through two holding companies, Sure Pass and Rise Grand. The stake is valued at more than $US1 billion, according to the prospectus.

Born in 1940, Wan joined WH Group’s predecessor Luohe Cold Storage in 1968, a decade after the state-owned company was founded in central China’s Henan province. He became the head of the factory in 1984.

The company is raising money to repay part of a $US4 billion loan that funded its purchase of Smithfield Foods, the biggest Chinese acquisition of a US firm so far. WH Group revived the share sale this month, after scrapping plans to raise as much as $US5.3 billion in April.

Fund managers placed orders for at least double the amount of stock available to them, according to sources who asked not to be identified. Individual investors subscribed for more than 55 times the number of shares in that portion, which accounted for 5 per cent of the offering, the people said.

The share sale would value WH Group at $US11.4 billion, about 11.5 times its estimated 2014 profit. Benny Liu, a Hong Kong-based external spokesman for WH Group, declined to comment.

BOC International Holdings and Morgan Stanley have been arranging the offering.

Henry Sapiecha