Apr 22, 2008

Viterra raises share offer for future acquisitions

Viterra, Canada's largest grain company, said Monday that it would raise as much as US$400.4 million in a share offering to pay for future acquisitions.

The company issued 28.6 million common shares at US$14 each to its underwriters, who have the option of buying an additional 4.29 million shares at the same price up to 30 days after the sales close on May 9.

Mayo Schmidt, Viterra chief executive, said that the company plans to expand beyond its Prairie base and has expressed plans to acquire biofuel and oilseed crushing plants, food and feed processing operations and crop supply retail outlets.

Viterra was created last year after Saskatchewan Wheat Pool took over its larger rival Agricore United.

The company handles more than 40 percent of grain from western Canada.