March 30, 2007

Saskatchewan Wheat Pool sweetens Agricore bid with cash component

Saskatchewan Wheat Pool Inc has sweetened its takeover offer for fellow agribusiness Agricore United and plans a bought-deal subscription-receipt financing totalling C$275 million (US$237 million) to provide additional funding to support its revised offer.

Regina-based Saskatchewan Wheat said that, under the revised offer, each Agricore shareholder will receive C$8 in cash and 0.95 Pool common share for each Agricore common share held.

As reported, the Pool was offering 1.3601 common shares for each Agricore share held.

The Pool said its offer is now, on a comparable basis, worth about C$4 more per Agricore share than

James Richardson International Ltd's competing bid for Winnipeg-based Agricore. It said the C$8-a-share cash component of its bid compares with the cash consideration of C$6.50 a share that its part of James Richardson's offer.

The Pool said its offer will expire on April 19.

The Pool said it will issue the subscription receipts on substantially the same terms as those previously issued. It's offering the receipts at C$8.10 each. Each receipt entitles the holder to acquire one Pool share. The financing is being made through Genuity Capital Markets and TD Securities Inc.