China’s Shuanghui International plans to launch an IPO in Hong Kong upon completion of the Smithfield Foods (SFD.NYSE) US$4.7 billion takeover, Reuters reported, citing anonymous sources. According to people familiar with the deal, Hong Kong would offer an “ideal” exit route for Shuanghui’s investors, which include Goldman Sachs (GS.NYSE) and New Horizons, when they decide to sell their stock. The Shuanghui-Smithfield merger, currently being valued at US$20 billion, would be worth around US$4 billion as an IPO. Sources said listing in Hong Kong would help the new company command a higher valuation in the market.
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