CWB has announced an agreement where it will acquire, through a wholly-owned subsidiary, all the issued and outstanding common shares of Great Sandhills Terminal Ltd. (GST), based at Leader, Saskatchewan. The deal, worth $581.98 per share, represents a total equity value, on a fully diluted basis, of $17,426,227 (subject to adjustment in certain circumstances), according to a press release.
GST’s board of directors have unanimously determined that this deal is in the best interests of GST and recommends that shareholders vote in favor of the transaction.
“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, Saskatchewan, and includes a majority stake in Great Sandhills Railway – a shortline railway operating 197 kilometers of track between Swift Current and Burstall, Saskatchewan.