The top executive of the company that will soon acquire CWB says it is unlikely it will buy out farmers’ equity in CWB after seven years.
Karl Gerrand, chief executive officer of G3 Global Grain Group, said he has no intention of buying out farmers who will eventually own a 49.9 percent share in the privatized CWB.
The equity is currently assumed to be worth at least $250 million.
“We fully recognize … that our success is completely dependent on farmers and on their willingness to sell grain to us,” Gerrand said.
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“We have had no discussions about that buyout … and have not indicated any preference that we would ever want to buy out farmers.”
CWB officials and federal agriculture minister Gerry Ritz announced in mid-April that G3 will acquire a 50.1 percent stake in CWB for $250 million.
The remaining 49.9 percent equity stake in the CWB will be owned by farmers and held in a farmers trust for at least seven years.
The equity arrangement was a condition prescribed by CWB executives who were charged with privatizing CWB before July 31, 2017.
However, Gerrand said the condition guaranteeing 49.9 percent farmer ownership will benefit G3 and farmers alike.
“We (G3) embrace this structure,” Gerrand said. “We see it as a real opportunity to have farmers engaged in our business, to be true owners of our business and to benefit from all of the value that that creates.”
