Winnipeg, Manitoba, Canada
April 4, 2007
Agricore United
(TSX:AU) today announced that it will engage in discussions with
and provide confidential information to
Saskatchewan Wheat Pool Inc.
(SaskPool) in connection with SaskPool's recently revised offer
of $8.00 in cash and 0.95 of a SaskPool common share for each
limited voting common share of Agricore United.
This action is based on determinations made by the Board of
Directors of Agricore United, following the recommendation of
its Special Committee and its consultations with legal and
financial advisors.
Agricore United will evaluate SaskPool's proposal to determine
whether it constitutes a "superior proposal" under the
acquisition agreement with James Richardson International
Limited (JRI). The Board expects to make its determination as to
whether the SaskPool proposal is a superior proposal by next
week.
In the meantime, pending completion of Agricore United's
discussions with SaskPool and the Board's review of the SaskPool
proposal, the Board continues to support the JRI transaction and
continues to recommend that Agricore United shareholders not
tender their shares to SaskPool's offer.
If the Board makes a determination that the SaskPool proposal is
a superior proposal and Agricore United proposes to enter into
an acquisition agreement with SaskPool, Agricore United must
provide notice of such determination to JRI and JRI would then
have five business days to match or top the SaskPool proposal.
If JRI chooses not to match or top the SaskPool proposal and
Agricore United terminates the JRI acquisition agreement to
enter into an acquisition agreement with SaskPool, Agricore
United must pay a termination fee of $24 million to JRI.
Agricore United is one of Canada's leading agri-businesses
with headquarters in Winnipeg, Manitoba and extensive operations
and distribution capabilities across western Canada, as well as
operations in the United States and Japan.
Agricore United uses its technology, services and logistics
expertise to leverage its network of facilities and connect
agricultural customers to domestic and international customers
and suppliers. The company's operations are diversified into
sales of crop inputs and services, grain merchandising,
livestock production services and financial services. Agricore
United's limited voting common shares are traded on the Toronto
Stock Exchange under the symbol "AU". |
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