PE firms bring home the bacon with the listing of WH Group

Today has seen WH Group, the Hong Kong-based pork and meat processing company, release its preliminary prospectus in relation to its intended listing on the Hong Kong Stock Exchange later this month. The listing is expected to value WH Group at around USD 6bn and will see Goldman Sachs, Temasek Holdings, CDH Investments and New Horizon Capital sell some, if not all, of their shares in the company and bring home a considerable amount of bacon in what is going to be the largest IPO on the HKSE since the listing of AIA Group for USD 17.4bn back in October 2010.

WH Group was formerly known as Shuanghui International Holdings, which hit headlines outside Asia last year with its audacious takeover of Smithfield Foods, the listed US meat production and packaging company, for just over USD 7bn.

With the growing demand in Asia for meat, and especially pork as many Asian populations become wealthier and more exacting consumers, it would also appear that financial investors will be able to capitalise upon the ever increasing value of the companies that supply those consumers.