Stockholders of Premium Standard Farms Inc have approved a merger agreement with Smithfield Foods Inc. As a result, PSF will become a wholly owned subsidiary of Smithfield, and each outstanding share of PSF common stock will be converted into the right to receive 0.678 of a share of Smithfield common stock and $1.25 in cash.
Under limited circumstances, Smithfield may substitute up to $1.00 in cash for part of the stock consideration having an equivalent value (based on the average price of Smithfield common stock during a specified period before closing of the transaction).
About 86.2% of the outstanding shares entitled to vote at a special meeting were voted in favor of the merger agreement. Completion of the merger remains subject to satisfaction of all other closing conditions, including governmental approvals.
PSF is the nation's third-largest pork producer and sixth-largest pork processor, with approximately 4,300 employees working at farms and processing facilities in Missouri, North Carolina, and Texas.