Providence Grain Group of Alberta has acquired 97.3 percent of the outstanding common shares in Meridian Grain Corp. of Marengo, Sask., and will now move to acquire the remainder.
A joint news release issued by the two companies last week said the conditions of Providence’s February offer to buy the outstanding shares had been met.
The purchase was made through an exchange of 916 Class A Meridian shares for each Class A Series 2 Providence share.
Operating as Providence Grain Solutions, the producer-owned company is based in Fort Saskatchewan and operates 31,200 tonnes of grain handling capacity at Gaudin, Viking and Crossfield and crop input facilities at Waskatenau, Gaudin and Mundare.
The Marengo purchase adds 12,000 tonnes of capacity.
Providence will acquire the remaining Meridian shares under Saskatchewan legislation, which allows for compulsory acquisition once more than 90 percent of shares accept an offer.
Chief executiveofficer Milt Miller said the deal is a significant step forward for Providence.
“This acquisition will add significantly to Providence’s growth strategy,” added chair Mike Kalisvaart.
