Saskatchewan Wheat Pool’s offer to buy the shares of Humboldt Flour Mills has been well received.
The pool announced May 4 that 96 percent of Humboldt’s outstanding shares had been tendered to the pool’s offer of $1.20 per share by 5 p.m. May 1. At that amount the total paid would be more than $18.5 million.
The pool is buying Humboldt Flour Mills through a subsidiary called 3483142 Canada Inc.
SWP’s bid was contingent on getting at least two-thirds of Humboldt Flour’s outstanding shares.
SWP’s bid was higher than one previously offered by the Alberta and Manitoba pools. That bid was for 85 cents a share.
Prior to these bids, Humboldt Flour’s shares were trading at about 75 cents.
Humboldt Flour operates a chain of 12 farm supply outlets in central Saskatchewan and sources, pro-cesses and markets special crops. It also has a small flour mill.
The company has about 13.87 million outstanding common shares (15.7 million if all options and rights are exercised) which are publicly traded on the Alberta Stock Exchange.
In 1997, it had gross sales of more than $75 million and assets totaling $36 million.
