Source: Rita Jane Gabbett, MEATINGPLACE, 6/24/14


Smithfield parent WH Group’s Hong Kong IPO could come back to the market at a discounted valuation of at least 25 per cent below the original offer pulled from the market in April, according to the South China Morning Post. 

Two fund managers told the Post that U.S. investment bank, Morgan Stanley, has contacted them to gauge interest in a deal that would value WH shares at 12 times estimated this year earnings compared to the 15-21 times earnings the sale was originally set for.

According to the China Economic Review, the original offer in April did not go forward for reasons including the rapid run-up in debt, too high a stock price and confusion caused by too many underwriters. Investors also balked at the news that two executives would receive $600 million in stock as a bonus for the Smithfield acquisition.

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