CWB buys PWT

CWB is now the sole owner of Prairie West Terminal Ltd.

CWB officials announced June 6 that the deal to acquire PWT is complete.

The announcement followed a May 30 meeting at which PWT shareholders voted 99.5 percent in favour of the transaction.

The $43 million deal includes a modern concrete elevator near Dodsland, Sask., and four wooden elevators at Kindersley, Luseland, Plenty and Dodsland.

Together, the facilities include more than 78,000 tonnes of storage, a high capacity grain cleaning line, high throughput dryer, colour sorters and high throughput rail loading.

“CWB’s acquisition of Prairie West Terminal is another key step in CWB’s strategy to create a network of assets across Western Canada and we are extremely happy with the confidence that Prairie West shareholders have placed in CWB,” said CWB president and chief executive officer Ian White.

CWB had been a minority shareholder in PWT before the deal’s approval.

It owned roughly 12 percent of PWT’s outstanding shares while Mission Terminal Inc., a wholly owned subsidiary of CWB, owned another 2.1 percent.

The June 6 deal will allow another CWB subsidiary, CWB Subco., to acquire the remaining 85.8 percent of outstanding PWT shares at a price of about $2,100 per share.

According to a CWB news release, the former Canadian Wheat Board or its subsidiaries will now have complete ownership and control of PWT assets.

CWB will run PWT as a wholly-owned subsidiary.

“This is business-as-usual for all of Prairie West’s current and future customers,” White said.

All grain delivered to PWT facilities will be eligible for an equity interest in CWB under CWB’s Farmer Equity Plan.

Under that plan, farmers who deliver a tonne of grain against CWB contracts to any elevator will be eligible for a $5 equity stake in CWB after CWB privatization has occurred.

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