On April 18, 2014, Pat Thompson, an equity research analyst at National Pension Plan, a large pension fund, was preparing to attend a road show presentation by WH Group Limited (WH Group), the worlds largest pork company, concerning its upcoming initial public offering (IPO). The road show would give Thompson an opportunity to view the company pitch and multimedia presentation and would also provide access to key company officers eager to talk about prospects for WH Group going forward. Thompson was reviewing the preliminary prospectus as well as other publicly available background information on WH Group and its two core subsidiaries, Shuanghui International Holdings Inc. (Shuanghui) and the recently acquired Smithfield Foods Inc. (Smithfield), which had both been merged into the WH Group entity.

As Pat Thomson, describe the issues you face Size-up economic conditions and global pork industry and identify key successfactors. As well, size-up the strengths and weaknesses of WH Group How would you assess the Smithfield acquisition? Identify the pros and cons Assess the intrinsic value of WH Group shares using both comparable/peer analysis as well as DCF As Pat Thomson, prepare a list of questions you would have for management at the road show As Pat Thomson, would you invest in WH Group? If so, how many shares would you purchase and at what price? If not, what would you suggest WH Group needs to do in order for you to consider investing at a later date?