AGT Food and Ingredients is continuing to make progress on its drive to privatization.
Murad Al-Katib, the company’s president and chief executive officer, said in an interview following his keynote address at Grain World on Nov. 14 in Winnipeg that an independent committee had yet to make a final decision on a proposal but it has agreed on the price per share.
“The special committee did indicate they are recommending the transaction at $18, which was our bid,” he said.
The AGT board of directors established the committee of independent directors to consider the latest proposal.
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On July 26, a group led by Al-Katib announced it wanted to acquire all of the issued and outstanding common shares of the Regina-based AGT. The group, which includes other members of AGT’s senior management along with Fairfax Financial Holdings Ltd. and Point North Capital Inc., offered $18 per share. The day before the announcement was made AGT shares on the TSX were at $13.17. The next day AGT shares spiked to more than $17 and currently remain near that mark.
Founded in 2001, AGT is a pulse and durum buyer, processor and exporter and has operations in 11 countries. Also, AGT has acquired railways and is part of the Arctic Gateway Group that purchased the Hudson Bay Railway from Omnitrax in August.
AGT issued its third quarter results on Nov. 12 in which the adjusted earnings before interest, tax, depreciation and amortization was $18.5 million and during same period its net debt increased by $46.2 million to $510.6 million.
