KANSAS CITY, MO. – The Sanderson Farms board of directors unanimously rejected an unsolicited offer from Durational Capital Management, a new shareholder, to acquire the poultry processor for $142 per share.
The proposal “...very substantially undervalues Sanderson Farms and its future prospects and is significantly below the 52-week high share price of $179.45,” the company said.
Sanderson Farms noted that the offer came only from Durational Capital Management alone and not Durational and Springdale, Ark.-based Tyson Foods Inc. A Tyson Foods spokesman declined to comment on the matter when contacted by MEAT+POULTRY.
As for the proposed offer from Durational, Sanderson said the board rejected the offer after finding — with help from the company’s financial and legal advisors — that “…the highly conditional and opportunistic proposal is not in the best interests of Sanderson Farms or its shareholders.”
“The board remains committed to enhancing value for all shareholders and believes it can generate significant additional value by continuing to execute its strategic organic growth plan, as discussed at the company’s recent Investor Day where it announced initiatives to increase production to serve the growing retail grocery market, including identifying and vetting a site for a new facility,” the company said.
Durational currently owns the Bojangles chain of quick-service chicken restaurants. The company previously held a stake in Churchill Downs, which owns the Kentucky Derby and other regional racetracks and a betting platform. Durational exited that investment in June of 2019, according to its website.
Matthew Bradshaw and Eric Sobotka co-founded Durational Capital Management in 2017. Bradshaw and Sobotka are listed as managing partners on the company’s website.