JBS seeks full control of Pilgrim’s Pride

Aug 18 (Reuters) – Brazil’s JBS, the world’s largest meatpacker, on Tuesday proposed acquiring the remaining shares of Pilgrim’s Pride , ​seeking full control of the U.S. ‌poultry producer.

Here are more details:

• JBS said it offered 2.086 JBS Class A shares for each Pilgrim’s Pride share at Tuesday’s closing rates. That represented ‌an ​offer of $28.49 per Pilgrim’s ⁠share.

• JBS shares closed ⁠at $13.66 on Tuesday, while Pilgrim’s Pride traded at $28.49. Both stocks were up near 1% in extended trading.

• The meatpacker already ​owns about 82% of Pilgrim’s Pride, which has a market cap of about $6.78 ⁠billion.

• The proposal is ⁠subject to review and approval by ​a committee of Pilgrim’s Pride independent directors, and ​by minority shareholders.

• The proposal comes ‌days after JBS agreed to form a joint venture with Indonesia’s sovereign wealth fund, Danantara, to pursue protein production investments across multiple ⁠countries. It also follows Pilgrim’s Pride’s agreement to acquire Walker’s Deli & Sausage Company for about $142 million.

• Earlier ⁠this month, ‌JBS reported an unexpected quarterly ⁠net loss, weighed down by ​an ‌antitrust settlement and debt tender offers ​as its ⁠U.S. beef business faced tight cattle supplies. Pilgrim’s Pride, meanwhile, reported lower quarterly sales last month due to softer chicken demand.

(Reporting by Neil J Kanatt in Bengaluru; Editing by ​Diti Pujara)