Mexican Processor Bids for Campofrio

18 November 2013, at 9:39am

SPAIN - Mexican food processing company, Sigma Alimentos has made a €675 million cash offer for the Spanish meat processor Campofrio.

Sigma estimates the total val;ue of the company at €1.119 billion

The Mexican company is offering €6.80 per share for th major European meat processor which has brans including Fiorucci and Aoste as well as Campofrio.

Sigma said that the value of the offer represents a premium over the volume weighted average price of the last 45 and 180 days of 18.7 per cent and 25.9 per cent, respectively.

Market analysts said the offer, which was made last week, was 11 per cent above the closing value of the Campofrio stocks on Wednesday.

One of the leading shareholders in Campofrio is the Chinese meat processing giant Shuanghui, who acquired 37 per cent of the c0ompany when it took over the Smithfield Food group earlier this year.

Shuanghui had already said that it wanted to reduce its interest in the Spanish meat processor.

Sigma will finance the acquisition through a loan.