Chinese PE firm CDH Investments to dilute 6.83% in pork producer WH Group for $806m

Beijing based alternative asset management firm CDH Investments will dilute its stake in Chinese pork producer WH Group, announcing the sale of 6.83 per cent stake in the company for $806 million (HK$6.25 million).

In a regulatory filing at the Hong Kong stock exchange, WH Group said it will “place 1,000,000,000 Shares (representing approximately 6.83 per cent of the total issued share capital of the Company as at the date of this announcement) held by the Vendors (CDH) to Independent Third Parties at the price of HK$6.25 per Share.”

The shares of WH Group, world’s largest pork producer, are being placed to unidentified third-party investors.

Currently, CDH holds 19.77 per cent stake in the total issued share capital of the company and immediately upon completion of the placing, the CDH will be holding only 12.94 per cent. However, CDH will still remain as substantial shareholders of the Company, the filing said.

CDH had invested in the company in 2007 when it was known as Shuanghui International and amassed a 30 per cent stake in the company over time. Since 2014, its stake has been going down. In August this year, the firm raised $1.2 billion from paring its stake in the pork producer when it sold 1.55 billion shares of the company.

WH Group operates business through three main segments, namely packaged meat products, fresh pork and hog production. In addition, it has other businesses which are ancillary to the primary business segments.

In China, these mainly include manufacturing and sales of packaging materials, provision of logistics services, operating a chain of retail grocery stores, producing flavoring ingredients and natural casings, and biological pharmaceuticals.

With investments in private equity, venture capital, real assets, mezzanine & credit, public equities and wealth management, CDH has over $16 billion in assets under management.

Also Read:

Chinese PE firm CDH Investments offloads $1.2b stake in pork major WH Group

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China’s CDH Investments closes fourth mezzanine fund at $525m

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.