It’s been several months since Saskatchewan-based AGT Food and Ingredients’ leadership announced its plans to take the company private. Today, AGT, Fairfax Financial, and Point North Capital released the details of its agreement to privatize.
AGT says they’ll offer $18 per common share, which represents a premium of 36.7 per cent to the closing price of AGT common shares on the Toronto Stock Exchange on July 26, 2018 — the last trading day prior to the privatization announcement.
Fairfax Financial and Point North Capital will maintain their holdings, which make up around 10.5 per cent of total holdings.
Earlier this year, a special committee comprised entirely of AGT directors was formed, independent of management and other representatives of the buyer group. The committee unanimously approved the transaction, and determined it was is in the best interests of the company.
“This transaction represents an opportunity for public shareholders of AGT to monetize 100% of their investment in AGT at a cash price that represents fair market value for their common shares and a significant premium to the unaffected trading price of AGT’s common shares,” commented Geoffrey Belsher, chairman of the special committee.
“Following a fairly lengthy process to consider the interests of all stakeholders of AGT and the future of the company, the management group, together with the other members of the buyer group, are excited at the prospect of a new chapter of AGT,” Murad Al-Katib, President and Chief Executive Officer, of AGT says in a news release.