CEO buys out Chinese pork producer for $502m

The chief executive of Chinese pork maker Zhongpin (HOGS.NASDAQ, CWP.FRA) will lead a buyout of the company for US$502 million, Bloomberg reported. Chairman and CEO Zhu Xianfu will buy the 74% of the company that he and other parties involved in the deal do not already own for US$13.50 a share, according to a Zhongpin filing on Wednesday. Zhu personally holds 17% of the company, according to data gathered by Bloomberg. Zhu will make the acquisition via two companies that he owns, Golden Bridge Holdings and Golden Bridge Merger Sub, and the deal is expected to close in the first quarter of 2012. The deal will be financed by China Wealth Growth Fund I, which will commit US$85 million and China Development Bank, which will provide loans US$320 million. Zhongpin has a right under the merger agreement to look for other bids up until January 25.