A Chinese investment group is taking a loss on shares of WH
Group Ltd. it bought when the company was taking over Smithfield Foods of
Virginia, the world’s largest hog producer and pork packer.
CDH Investments plans to sell about one-third of its
holdings in the company for a potential $1.19 billion, below the shares’
initial public offering price, the Financial Times reported from Hong Kong.
WH Group bought Smithfield in 2013.
CDH is one of the longest-running Chinese private equity
funds, formed in 2002, and the difficulties in launching the WH Group listing
were considered an embarrassment for Hong Kong’s investment banking community,
the Financial
Times reported.
CDH said it plans to sell a 10.61 percent stake in WH Group
at a share price of HK$5.95 a share, below the HK$6.20 price at the IPO, for a
loss of $50 million, according to the article.
