CDH Investments To Sell WH Group Shares For $730M In Partial Exit

Chinese alternative investment firm CDH Investments is selling an aggregate HK$5.7 billion (US$730 million) worth of shares in China’s WH Group Ltd., the world largest pork supplier.

Marking the third divestment CDH Investments has made in the past nine months, the Beijing-based investment firm plans to sell 883 million shares at HK$6.55 (US$0.83) apiece, reducing its stake from 9.27% to 3.24%, according to WH Group’s filings.

The price represents a 5.89% discount to the company’s closing price of HK$6.96 (US$0.89) on May 19. WH Group’s shares traded at HK$6.8 (US$0.87) today, down 1.4% compared with its previous closing price.

CDH made two undisclosed investments in 2007 and 2010 in Shuanghui Group, as WH Group was known at the time. In 2014, WH Group completed an initial public offering in Hong Kong, raising a total of HK$15.9 billion (US$2 billion).

At the time, CDH Investments was the biggest shareholder, holding a 38.1% stake in the business, while a private equity unit of Goldman Sachs, along with Temasek Holdings and New Horizon Capital held minority interests.

Last August, CDH sold around 1.55 billion WH Group shares for US$1.19 billion in a partial exit, reducing its stake to 19.77% from 30.39%. Two months later, it made another divestment, selling HK$10.6 billion (US$1.37 billion) worth of shares and reducing its stake to 12.94% from 19.77%.

China Expert Network