Regina-Saskatchewan Wheat Pool Inc. has added a cash component to its offer for Agricore United Ltd., using two offerings totaling $195 million to raise the money. Under the revised common share offer, AU’s limited voting common shareholders may elect to receive, for each AU common share tendered, $11.33 in cash, 1.3601 SaskPool common shares, or any combination thereof, in each case subject to pro ration. The amount of cash to be paid to AU common shareholders will be approximately $178 million, and the number of Pool common shares to be issued will be approximately 59 million. Assuming full pro ration of these amounts, the result would be $3.00 in cash and 1.0 SaskPool common share for each Agricore common share. SaskPool has also extended its offers for AU common shares and Series A convertible preferred shares to March 7 at 5:00 p.m. Toronto time. AU redeemed all of its 9 percent convertible unsecured subordinated debentures in exchange for limited voting common shares. As a result, SaskPool’s offer for Agricore’s convertible debentures will not be extended. The Canadian Competition Bureau will extend its review into February. U.S. Department of Justice authorities also indicated a need for more time. As a result, SaskPool withdrew the Hart-Scott-Rodino notice and refiled it so that an additional 30-day review period would be available. AU shareholders will receive a revised circular.
Transparency Across the Fertilizer Value-Chain