SASKATOON, Sask. – Unless Canada Malting Co. can find another bidder, Canada’s largest malting company may soon be owned by the American processing giant ConAgra.
ConAgra has offered $395 million, or $20 a share, for the Toronto-based malting company, provided it can acquire at least 70 percent of Canada Malting’s shares, said Ken Eden, chief executive officer of Canada Malting.
After a review of their assets and growth potential, Eden said they are looking for a bid “significantly higher” than the $20 per share offered for ConAgra.
On Sept. 20 Canada Malting shares were trading at $21.50.
Labatt’s and Molson breweries, who together own 39.3 percent of the maltster’s shares, said they would be willing to sell.
Calling all bidders
Canada Malting has struck a committee, headed by Wood Gundy, which has just over a month to find another company willing to pay more than the $20 a share.
ConAgra, based in Omaha, Nebraska has no North American malting presence.
Canada Malting Co. owns three malting plants in Canada, three in the United States, two in the United Kingdom and two in South America.
