In a move some might already thought was coming, Saskatchewan-based AGT Food and Ingredients Inc announced Thursday it would be seeking privatization.
The pulse processing and export company announced the move to go private this morning, but did not offer a clear indication as to when the privatization would actually take place.
According to a press release, AGT will buy back shares at $18, a 37 per cent premium over Wednesday’s closing price.
President and CEO Murad Al-Katib, along with members of the management group, will keep their shares, which are pegged at more than $4.1 million — around 17 per cent of the company.
Fairfax financial and Point North Capital will also keep their holdings which make up around 10.5 per cent of total holdings. Current members of the senior management team will remain in their current management positions with AGT after completion of the transaction, according to a statement.
The company states they will form a committee with independent directors to consider all options of the proposal and won’t be making further comment about the potential of privatization.
According to PostMedia, AGT Foods recently reported a $36 million loss on revenues totalling $1.7 billion.