May 10, 2007

Agricore accepts higher takeover offer from Saskatchewan Wheat Pool

Agricore United has agreed to support a cash offer of C$20.50 a share from Saskatchewan Wheat Pool Inc.

The Winnipeg agribusiness said Saskatchewan Wheat Pool will also pay C$24 for each Series A convertible preferred share. It said the transaction has a total enterprise value of about C$1.8 billion (US$1.6 billion).

As reported, Saskatchewan Wheat Pool had been competing with James Richardson International Ltd for Agricore. Richardson's latest offer was C$19.25 a share.

Saskatchewan Wheat Pool said it has agreed to sell certain Agricore assets to Richardson.

Agricore said Richardson has waived its right to match the new Saskatchewan Wheat Pool offer, so Agricore will pay a break-up fee of C$35 million to Richardson.