China’s WH Group Announces HK$15 Billion Share Buyback
June 6, 2021
China’s WH Group Ltd., the world’s biggest pork processor, said it plans to repurchase as much as HK$15 billion ($1.9 billion) worth of stock after a recent slump in its share price.
The company proposes to buy back approximately 13% of its issued shares at HK$7.80 each, the company said in a filing to the Hong Kong stock exchange Sunday.
The price represents a premium of 17.3% over the June 1 closing price of HK$6.65. The company will resume trading Monday, June 7.
Shares of China’s largest hog producers have tumbled since February amid concern that slumping pork prices and higher feed costs could squeeze margins. Hog prices have fallen as China’s massive herd recovers from African swine fever, while feed ingredients like corn, soybeans and wheat have rallied on robust Chinese demand and tight global supplies.
The share buyback plan underscores WH Group’s confidence in the future of its business. So far, the large producers have reported higher sales, which helped to offset the impact of lower prices.
The company said in March that it plans to increase meat imports...
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