The Chinese company that bought Smithfield Foods Inc. has cancelled its plans to sell shares on stock markets in Asia and the United States.
“In light of deteriorating market conditions and recent excessive market volatility, the company, having consulted the joint sponsors, has decided that the global offering will not proceed at this time,” WH Group said in a statement issued today.
I guess investors don't have a whole lot of confidence in the Chinese company.
The company initially planned to raise about $5.3 billion through an Initial Public Offering (IPO) of shares.
Earlier this month it scaled that back to $1.9 billion.
The company also took flack from investors when it was revealed that the executive who arranged the purchase of Smithfield was due to get $600 million worth of shares.
Smithfield is the world’s largest hog producer and pork packer.
At one time it owned Schneider Corp. of Kitchener and Saskatoon, but sold to Maple Leaf Foods Inc.