Sanderson Farms Issues Statement
October 29 2020 - 3:15PM
Business Wire
Sanderson Farms, Inc. (NASDAQ: SAFM) today issued the following
statement:
Sanderson Farms has not received a proposal from Tyson Foods and
Durational Capital Management. The Sanderson Farms Board of
Directors has unanimously rejected an unsolicited proposal from
Durational Capital Management, a new shareholder, to acquire the
Company for $142 per share, a price that very substantially
undervalues Sanderson Farms and its future prospects and is
significantly below the 52-week high share price of $179.45. After
careful consideration, with the assistance of its financial and
legal advisors, the Board unanimously determined that the highly
conditional and opportunistic proposal is not in the best interests
of Sanderson Farms or its shareholders.
The Board remains committed to enhancing value for all
shareholders and believes it can generate significant additional
value by continuing to execute its strategic organic growth plan,
as discussed at the Company’s recent Investor Day where it
announced initiatives to increase production to serve the growing
retail grocery market, including identifying and vetting a site for
a new facility.
Centerview Partners LLC is serving as financial advisor and
Wachtell, Lipton, Rosen and Katz, Fishman Haygood LLP, and The
Brunini Law Firm are serving as legal counsel to Sanderson
Farms.
About Sanderson Farms, Inc.
Sanderson Farms, Inc. is engaged in the production, processing,
marketing and distribution of fresh, frozen and minimally prepared
chicken. Its shares trade on the NASDAQ Global Select Market under
the symbol SAFM.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the “safe harbor” provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements are based on a number of assumptions about future events
and are subject to various risks, uncertainties and other factors
that may cause actual results to differ materially from the views,
beliefs, projections and estimates expressed in such statements.
These risks, uncertainties and other factors include, but are not
limited to, those discussed under “Risk Factors” in the Company’s
Annual Report on Form 10-K for the fiscal year ended October 31,
2019, and Quarterly Report on Form 10-Q for the quarter ended July
31, 2020.
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version on businesswire.com: https://www.businesswire.com/news/home/20201029006155/en/
Mike Cockrell Sanderson Farms, Inc. Treasurer,
Chief Financial Officer & Chief Legal Officer
(601) 426-1454
Paul Caminiti / Delia Cannan / Nicholas Leasure
Reevemark (212) 433-4600
Sanderson Farms (NASDAQ:SAFM)
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