GREELEY, COLO. – Pilgrim’s Pride Corp. (PPC) for a second time rejected an offer from São Paulo, Brazil-based JBS SA for the remaining shares of common stock of PPC. JBS USA, the Brazilian meat and poultry processor’s subsidiary, currently has an 80.21% ownership stake in Pilgrim’s.
In August of 2021, officials with JBS SA offered $26.50 per share in cash for all of the outstanding shares of common stock that JBS does not own.
In an update on the status of negotiations between the companies, a special committee of independent directors of Pilgrim’s informed JBS that it would not support the proposal unless JBS significantly increased its purchase price. On Nov. 15, 2021, JBS offered to increase its purchase price to $28.50 per share.
“The Special Committee, in consultation with its financial and legal advisors, determined that the revised proposal from JBS does not appropriately value the shares of Pilgrim’s Pride owned by shareholders other than JBS, and again informed JBS that the Special Committee would not support the JBS proposal unless JBS significantly increased its purchase price,” the committee said.
JBS said company officials would continue to evaluate the special committee’s response and consider whether to revise the terms of its proposal. On Feb. 4, JBS said the company would have a response by the end of the month.
“There can be no assurance that JBS and the Special Committee will reach an agreement with respect to the JBS proposal, or that a transaction will be completed,” the committee said.