Update from Special Committee of Pilgrim’s Pride

Rhea-AI Summary

The Special Committee of Pilgrim's Pride Corporation (NASDAQ: PPC) has updated its Board regarding JBS S.A.'s unsolicited acquisition proposal. Initially offered at $26.50 per share in August 2021, JBS increased the bid to $28.50 per share on November 15, 2021. However, the Special Committee, advised by financial and legal experts, concluded that the revised offer does not fairly value non-JBS shareholders' stakes. As of February 4, 2022, JBS plans to respond by the end of February, but no agreement is assured.

Positive

• None.

Negative

• JBS's acquisition proposal undervalues shares for non-JBS shareholders.
• Uncertainty remains regarding the final terms and completion of the transaction.

GREELEY, Colo., Feb. 04, 2022 (GLOBE NEWSWIRE) -- The Special Committee of the Board of Directors of Pilgrim’s Pride Corporation (NASDAQ: PPC) today provided an update to the full Board of Directors of Pilgrim's Pride on the status of discussions with JBS S.A. regarding JBS's unsolicited proposal to acquire all of the outstanding shares of common stock of Pilgrim's Pride that JBS does not currently own for $26.50 per share in cash, which was previously announced on August 13, 2021.

The Special Committee has carefully and thoroughly reviewed the proposal from JBS in consultation with its financial and legal advisors. On October 29, 2021, the Special Committee informed JBS that it would not support the JBS proposal unless JBS significantly increased its purchase price. On November 15, 2021, JBS offered to increase its purchase price from $26.50 per share to $28.50 per share. The Special Committee, in consultation with its financial and legal advisors, determined that the revised proposal from JBS does not appropriately value the shares of Pilgrim's Pride owned by shareholders other than JBS, and again informed JBS that the Special Committee would not support the JBS proposal unless JBS significantly increased its purchase price. On January 12, 2022, JBS informed the Special Committee that it is continuing to evaluate the Special Committee's response to the JBS proposal, and is considering whether to further revise the terms of its proposal. On February 4, 2022, JBS informed the Special Committee that it expects to provide a response to the Special Committee by the end of February. There can be no assurance that JBS and the Special Committee will reach an agreement with respect to the JBS proposal, or that a transaction will be completed.

About Pilgrim’s
As a global food company with more than 56,000 team members, Pilgrim’s processes, prepares, packages and delivers fresh, frozen and value-added food products for customers in more than 100 countries. For more information, please visit www.pilgrims.com.

Media Contact:
Nikki Richardson
Corporate Communications
nikki.richardson@jbssa.com

FAQ

What is the status of JBS's acquisition proposal for Pilgrim's Pride (PPC)?

As of February 4, 2022, the Special Committee determined that JBS's revised offer of $28.50 per share does not appropriately value the shares owned by other shareholders.

What was the initial offer from JBS to acquire shares of Pilgrim's Pride (PPC)?

JBS initially proposed to acquire shares at $26.50 per share in August 2021.

When did JBS increase its offer for Pilgrim's Pride (PPC)?

JBS increased its offer from $26.50 to $28.50 per share on November 15, 2021.

When can we expect a response from JBS regarding the acquisition proposal for Pilgrim's Pride (PPC)?

JBS indicated it would respond to the Special Committee by the end of February 2022.

Is there a possibility that JBS and Pilgrim's Pride (PPC) will reach an agreement?

There is no assurance that an agreement will be reached or that a transaction will be completed.