Canadian Wheat Board moving to acquire Great Sandhills Terminal
The Board of Directors of the Great Sandhills Terminal Ltd. have entered into an agreement to sell the Leader-based independent inland grain terminal to the Canadian Wheat Board for a purchase price of over $17 million.
In a agreement announced earlier this morning, the CWB has entered into an agreement to acquire all outstanding common shares of the Great Sandhills Terminal at a cost of $581.98 per share for a full cost of $17,426,227. The Great Sandhills Terminal board unanimously approved the agreement, and is recommending that shareholders vote in favour of the transaction in order to take advantage of the CWB's access to export markets and its significant grain marketing experience, which will provide a strong, local competitive option for Great Sandhills Terminal farm customers.
"Today's agreement brings together the strong reputations of both companies under one roof," said Wayne Hittel, Chairman of Great Sandhills Terminal. "CWB's prized international brand and GST's service excellence are just two of the reasons this acquisition is a win-win for all stakeholders - CWB, GST shareholders, our local community, and all of our farmer-customers that deliver grain to GST now and in the future."
The Great Sandhills Terminal's Board will mail a management information circular containing additional details of the transaction in the upcoming weeks to its shareholders for approval at a meeting expected to be held in August. If approved, the transaction is expected to be completed before Sept. 1.
"CWB and Great Sandhills Terminal have worked very well together for many years providing farmers with valuable marketing options," said CWB president and CEO Ian White. "We look forward to providing an even stronger value proposition to farmers as a single company. This purchase strengthens CWB's growing network of assets across Western Canada and provides the opportunity for an ongoing farmer ownership stake in GST through our Farmer Equity Plan."
The agreement with Great Sandhills Terminal complements CWB's recent acquisition of Prairie West Terminal by expanding CWB's country assets in western Saskatchewan to include GST's high-throughput grain handling facility near Leader, and a majority stake in Great Sandhills Railway - a shortline railway operating 197 kilometers of track between Swift Current and Burstall.
In addition to the Arrangement Agreement, each member of GST's Board has entered into voting and support agreements pursuant to which they have agreed to vote their GST shares in favour of the transaction.