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
