GREELEY, COLO. – Pilgrim’s Pride Corp. (PPC) has announced the formation of a special committee of independent directors to review a proposal for acquisition of the outstanding shares of common stock of PPC that JBS does not currently own. On Aug.12, 2021, JBS S.A. announced a proposal to acquire the remaining shares of PPC. In 2009, JBS invested $800 million in the company, becoming an 80.21% owner, while allowing PPC to emerge from bankruptcy protection.
Skadden, Arps, Slate, Meagher & Flom LLP will act as legal counsel, and Goldman Sachs & Co. LLC, as financial advisor to assist the special committee in its review and evaluation of the JBS proposal.
The board resolutions that established the committee stated the PPC board of directors will not approve the proposal from JBS without favorable recommendation of the special committee, and that any transaction will be conditioned on the affirmative vote of a majority of PPC shares that are not held by JBS or its affiliates.
There is no guarantee of a definitive agreement relating to JBS’ proposal will be entered into by PPC, nor is there assurance that any transaction will be consummated.