ConAgra to Offer Shares for Sale

RELATED QUOTES

SymbolPriceChange
CAG31.06-0.10
BAC16.34-0.03
BRFS21.99+0.06

ConAgra Foods, Inc. (CAG) announced offering sale of its shares worth $240.0 million through an underwritten public offering.

The total offer consists of approximately 8.1 million shares to be issued at a price of $29.50 (the closing price on December 31, 2012). In addition, the company has also offered the underwriter a 30-day option to purchase shares worth $35.0 million.

The proceeds from the issue will be utilized to fund ConAgra’s pending acquisition of Ralcorp Holdings Inc. (RAH) at a price of $90.0 per share. The acquisition was announced in late November last year. In case the acquisition does not get through, the proceeds will be utilized for general corporate purposes.

The acquisition, valued at $6.8 billion, is expected to be complete by March 2013, subject to regulatory approvals. Subsequent to the acquisition of Ralcorp, ConAgra will emerge as the largest private label packaged food company in North America. Management expects the combined entity to garner sales of over $18 billion in the future. Starting from the fourth year, ConAgra is expected to derive cost synergies of about $225 million per year from the acquisition.

BofA Merrill Lynch, a wing of Bank of America Corp. (BAC), is the sole book running manager for the offering of common stock.

The company had a total of 405.8 million shares and a market capital of $12.18 billion at the close of trading on January 3, 2013.

We currently have a Neutral recommendation on CAG. The stock bears a Zacks #2 Rank (Buy), while its prime competitors H.J. HEINZ CO. (HNZ) and BRF-Basil Foods S.A. (BRFS) carry a Zacks #3 (Hold) Rank.

Read the Full Research Report on CAG

Read the Full Research Report on HNZ

Read the Full Research Report on BAC

Read the Full Research Report on BRFS

Read the Full Research Report on RAH

Zacks Investment Research



More From Zacks.com
Loading...
 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.2593+0.0012+0.10%
    USDSGD=X
    1.7419+0.0017+0.10%
    EURSGD=X
    2.1160+0.0022+0.10%
    GBPSGD=X
    81.2602-0.0319-0.04%
    SGDJPY=X
    6.1569-0.0058-0.09%
    SGDHKD=X
    2.6005+0.0022+0.08%
    SGDMYR=X
    9,199.1904-56.8359-0.61%
    SGDIDR=X
    4.9695+0.0025+0.05%
    SGDCNY=X
    1.1681+0.0028+0.24%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,291.80+1.20+0.09%
    GCM14.CMX
    19.58-0.11-0.55%
    SIK14.CMX
    91.62-1.25-1.35%
    ^XAU
    3.120.00+0.11%
    HGK14.CMX
    101.86-0.08-0.08%
    CLM14.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.74+0.03
    ^FVX
    2.690.00
    ^TNX
    3.460.00
    ^TYX

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    2.22+0.010+0.45%
    JS8.SI
    1.17+0.020+1.74%
    U6C.SI
    0.122-0.001-0.81%
    B22.SI
    1.34-0.015-1.11%
    G13.SI
    1.205-0.010-0.82%
    S53.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.21+0.020+10.53%
    F86.SI
    0.116+0.010+9.43%
    O2I.SI
    0.73+0.060+8.96%
    5DP.SI
    0.168+0.016+10.53%
    5HH.SI
    1.315+0.084+6.82%
    O9A.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.142-0.012-7.79%
    5GD.SI
    0.151-0.009-5.63%
    A03.SI
    0.20-0.010-4.76%
    5CH.SI
    0.30-0.015-4.76%
    K29.SI
    0.205-0.010-4.65%
    510.SI