The Bours family, major shareholders in Industrias Bachoco S.A.B. de CV (IBA), have announced a tender offer for outstanding shares of the company followed by a delisting both on the New York Stock Exchange and the Bolsa Mexicana deValores. The offer was priced at $40.83 representing a premium of 20 percent over the average share price over 30 days. IBA closed at $39.81 on March 29th but ended at $46.63 on March 4th. The share has traded over a 52-week range of $36.98 to $47.80.
Industrias Bachoco is the major broiler producer in Mexico deriving 90 percent of revenue from poultry meat with the remainder from eggs and cattle. The company owns OK Foods of Fort Smith, AR. that contributed 25% of revenue in FY 2021. On a trailing 12-month basis IBA generated returns of 6.1 percent on assets and 10.7 percent on equity. The Company achieved an operating margin of 7.4 percent and a 6.2 percent profit margin.