Sigma launches bid to buy meat processor Campofrio
Sigma has offered €6.80 per share for Campofrio, equivalent to an equity value of €675 million and a…Sigma has offered €6.80 per share for Campofrio, equivalent to an equity value of €675 million and an enterprise value of €1.12 billion.
Campofrio shares surged 11.38% on the news, climbing from an opening price of €6.15 to €6.85 at 14:00 GMT on Thursday.
Sigma, which registered the offer with Spanish regulator the CMNV yesterday, said it has already inked purchase agreements with shareholders representing 45.8% of Campofrio's outstanding share capital.
Chinese firm Shuanghui International has already signalled its intention to reduce its 37% stake in Campofrio in order to avoid triggering a mandatory offer for the Spanish meat firm, per Spanish securities requirements.
Commenting on the move, Sigma CEO Mario Paez said the acquisition would provide the company with access to the European market with a stable of high-profile brands.
"The acquisition of Campofrio represents a unique opportunity to enter the European market with leadership positions," he said.
In its most recent financial update, issued earlier this week, Campofrio nine-month EBITDA totalled EUR100m, down 3.7% on the comparable period of last year.