ConAgra stock sales to fund Ralcorp acquisition
January 8, 2013
by Jeff Gelski
OMAHA — ConAgra Foods, Inc. is offering to sell about $240 million of its common stock through an underwritten public offering. The Omaha-based company also granted the underwriter a 30-day option to purchase up to an additional $35 million of its common stock.
ConAgra intends to use the proceeds to fund, in part, the acquisition of St. Louis-based Ralcorp Holdings, Inc. ConAgra Foods on Nov. 27, 2012, said it would purchase Ralcorp in a transaction valued at about $6.8 billion, including the assumption of debt. If the acquisition is not consummated, ConAgra Foods plans to use the net proceeds for general corporate purchases.
ConAgra Foods has filed a registration statement relating to the securities with the Securities and Exchange Commission. The offering may be made only by means of a preliminary prospectus supplement and the accompanying prospectus.