Shareholders in western Saskatchewan’s Great Sandhills Terminal (GST) have unanimously approved an offer from the grain company formerly known as the Canadian Wheat Board.
CWB announced Friday it’s completed its $17.4 million acquisition of GST, following an Aug. 18 meeting at which 100 per cent of shareholder votes went in favour of the deal.
CWB’s all-cash deal, valued at $581.98 per GST share, “strengthens our presence in western Saskatchewan with the addition of another large-capacity grain terminal and officially puts us in the shortline railway business,” CWB CEO Ian White said in a release.
Specifically, the deal includes GST’s 19,400-tonne capacity terminal on Highway 32 east of Leader, Sask., about 150 km northwest of Swift Current.
The terminal combines a 13,000-tonne capacity concrete house facility and an automated steel annex with 6,400 tonnes of storage capacity.
GST also comes with a controlling stake in Great Sandhills Railway, which operates about 190 km of former Canadian Pacific Railway (CP) track running from west of Swift Current to Burstall, Sask., plus a spur line running west from Burstall to serve energy operations in southeastern Alberta.
GST also has minority stakes in Alliance Grain Terminal at the West Coast; GNP Consulting, a transportation and logistics consulting firm; and Alliance Seed Co., which handles identity-preserved seed sales.
The deal, first announced in June, makes GST part of a quickly-expanding asset base for the CWB in Western Canada. The former Wheat Board has already announced plans to build two high-throughput elevators and bought Prairie West Terminal, a farmer-owned group of elevators also in western Saskatchewan.
CWB’s handling assets also already include Winnipeg-based Mission Terminal, which came with a Thunder Bay grain terminal, a grain elevator west of Brandon, Man., and stakes in three Prairie producer-car loading facilities and five shortline rail operations.
All tonnes delivered to any CWB facilities, or to CWB through its handling agreements with other line grain companies, will be eligible for an equity interest in CWB under CWB’s Farmer Equity Plan, White reiterated Friday.
The Farmer Equity Plan, set up last year, is expected to translate farmers’ deliveries to CWB into equity interest in the company after privatization. — AGCanada.com Network