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Canada : CANADIAN WHEAT BOARD buys another grain terminal in SASKATCHEWAN

June 24, 2014

The Canadian Wheat Board (CWB) has announced the acquisition of another grain terminal in Saskatchewan.

The acquisition is segment of CWB ongoing efforts to become fully self-sufficient by August 2017. The former Crown Corporation declared that it has approached a tentative agreement to purchase all of the outstanding shares in Great Sandhills Terminal Ltd. (GST) for $17.4 million.

GST shareholders must approve the acquisition. The acquisition comprises of a high-throughput grain-handling facility near Leader, Sask., and a majority stake in a shortline railway (Great Sandhills Railway) it owned and run between Swift Current and Burstall, Sask.

The new agreement takes place 2 months following CWB paid $43.2 million to buy Prairie West Terminal Ltd., a west-central Saskatchewan company with a total of five elevators and 78,000 tonnes of storage capacity.

GST chairman Wayne Hittel stated "Today s agreement brings together the strong reputations of both companies under one roof." The GST agreement is expected to close before Sept. 1.

"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," Wayne Hittel further stated.

CWB president and CEO Ian White commented that the 2 firms have worked jointly for many years delivering Saskatchewan farmers with marketing options.

White further added "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."

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: TendersInfo (India)

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