Legumex Walker division sale proceeds fall short

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Published: October 16, 2015

Shareholders of a Winnipeg-based special crops and oilseed processing firm will get less than originally anticipated from the sale of its special crops division.

Legumex Walker said the net proceeds that will be distributed to shareholders from the sale of the division to Scoular for $94 million is estimated to be $1.95 to $2.25 per share.

The company originally thought shareholders would receive $2.50 to $2.75 per share. Legumex Walker’s shares closed at $1.63 on Oct. 16.

The lower estimate is due to a reduction in net working capital in the third quarter.

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“Both growers and customers were reluctant to transact during the critical harvest period pending greater certainty in our strategic process,” Legumex chair Bruce Scherr said in a press release.

He said the sale still “represents excellent value” for shareholders, as it would be a 97 to 127 percent premium over the 20-day volume-weighted price of the company’s common shares on the TSX.

Shareholders will be asked to vote on the sale at a special meeting in Toronto on Nov. 9. It must be approved by two-thirds of the company’s shareholders.

 

sean.pratt@producer.com

About the author

Sean Pratt

Sean Pratt

Reporter/Analyst

Sean Pratt has been working at The Western Producer since 1993 after graduating from the University of Regina’s School of Journalism. Sean also has a Bachelor of Commerce degree from the University of Saskatchewan and worked in a bank for a few years before switching careers. Sean primarily writes markets and policy stories about the grain industry and has attended more than 100 conferences over the past three decades. He has received awards from the Canadian Farm Writers Federation, North American Agricultural Journalists and the American Agricultural Editors Association.

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