Tyson Foods To Divest China Poultry Business: Report
Portfolio Pulse from Lekha Gupta
Tyson Foods Inc is planning to sell its China poultry business and has hired The Goldman Sachs Group Inc as an advisor for the divestiture. The company has sent preliminary information to potential buyers, including several private equity firms. The valuation of the business, which has annual sales of around $1.1 billion, is unclear. Tyson Foods recently reported Q3 FY23 results, missing revenue and EPS consensus. The company's shares closed lower by 0.61% at $53.40 on Wednesday.
August 17, 2023 | 9:55 am
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Tyson Foods is planning to sell its China poultry business. The company recently reported Q3 FY23 results, missing revenue and EPS consensus. The company's shares closed lower by 0.61% at $53.40 on Wednesday.
The divestiture of Tyson Foods' China poultry business could be seen as a strategic move to streamline operations and focus on core markets. However, the recent miss on Q3 FY23 revenue and EPS consensus could negatively impact investor sentiment, leading to a potential short-term decrease in stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
The Goldman Sachs Group Inc has been hired as an advisor for the divestiture of Tyson Foods' China poultry business.
Goldman Sachs' role as an advisor in the divestiture of Tyson Foods' China poultry business could potentially bring in advisory fees for the company. However, the impact on the company's overall financial performance and stock price is likely to be minimal in the short term.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50