Chinese private equity firm, CDH Investments is selling down its stake in WH Group, the world’s largest pork producer by an aggregate value HK$10.6 billion (US$1.37 billion) to unidentified third parties.

In a filing with the Hong Kong bourse, CDH announced it was selling down its stake from its current 19.77 percent to 12.94 percent through the sale of one billion shares at HK$6.25 per share, and went on to say it reserves the option to sell a further 697.2 million shares, or another 4.76 percent stake at the same time, bringing CDH’s final holding in WH Group down to 8.18 percent.

Currently, CDH is the second largest shareholder in WH Group, which grew to dominate the global sector when it acquired U.S.-based Smithfield Foods in 2013 in a deal valued at $7.1 billion.

One year after the Smithfield acquisition, WH Group went on to raise $2.1 billion through a Hong Kong initial public offering (IPO). Initially, the company, which counted CDH, Goldman Sachs and Temasek as key investors, planned to raise $5.3 billion to pay down debt incurred through the Smithfield acquisition, but investors turned away due to high valuations reports Reuters.

However, Smithfield is proving to be a boost for WH Group, posting a strong third quarter 2016 with a $60 million year on year increase in net income according to Global Meat News.

The company has earmarked its packaged meat unit as a source of growth after it posted an increase in operating profits of $24.5 million in the 13 weeks to October 2. Additionally, the company’s fresh pork unit saw a jump in operating profits of $62.6 million for the quarter due to high U.S. hog herd numbers and low market prices.