Cana­dian Wheat Board mov­ing to ac­quire Great Sand­hills Ter­mi­nal

The Southwest Booster - - NEWS -

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 Sand- hills Ter­mi­nal have worked very well to­gether for many years pro­vid­ing farm­ers with valu­able mar­ket­ing op­tions,” said CWB pres­i­dent and CEO Ian White.

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 km 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.

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.