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Smithfield buys back COFCO's shares
Story Date: 11/20/2012
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Source: Lisa M. Keefe, MEATINGPLACE, 11/19/12
Smithfield Foods Inc. purchased 7.0 million shares of its common stock from COFCO Corp., these Chinese agricultural trading and processing company that invested in Smithfield more than four years ago.
The purchase was made pursuant to Smithfield's previously announced share repurchase program, the Smithfield, Va.-based company said in a news release.
"As the leading consumer of pork, China is an important export market for Smithfield and we will continue to maintain a strong commercial relationship with COFCO going forward," said C. Larry Pope, president and chief executive officer, in the release.
Smithfield exports pork to the Chinese market from hogs raised without ractopamine; China refuses to import meat from hogs so treated, but meeting that standard is expensive.
The aggregate value of the purchase was about $148 million, or $21.12 per share, and represents the entirety of COFCO's previously held position that was established in July 2008, when COFCO bought 4.95 percent of Smithfield's outstanding shares at the time.
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