We continue to be active in the Funds’ position in Industrias Bachoco (IBA, Financial), the Mexican chicken company, arguing aggressively against a proposed voluntary tender offer under consideration by the Robinson Bours family. We believe the offer made by the controlling family is well below fair value and unfairly benefits the family at the expense of minority shareholders. We sent a letter to make our objections known. We also participated in an open letter along with other shareholders, collectively representing about 16% of the outstanding shares. We believe the offer has left shareholders with two bad options: be forced to embrace this poor offer well below our estimate of fair value; or not tender and face even less liquidity in an already thinly-traded stock. Also, shareholders who choose not to tender could be vulnerable later to a follow-on tender offer to mop up holdouts at an even lower price. As a result, we have made numerous efforts to put pressure on the controlling family through the press and combined efforts with other shareholders in hopes of achieving a better outcome.
From Tweedy Browne (Trades, Portfolio)'s second-quarter 2022 letter.
