A group of local farmers and investors is once again the sole owner of
Saskatchewan’s largest feedlot and ethanol facility.
Pound-Maker Investments has bought 22,000 shares in Pound-Maker
Agventures at Lanigan, Sask., from Saskatchewan Wheat Pool and the
former Agricore.
Agventures president Brad Wildeman said the company took the
opportunity to regain full ownership when the two grain companies sold
their interest in Heartland Livestock Services last summer.
“We just decided that we might as well buy them back ourselves,” he
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said.
“After 11 years we finally have the company back under the control of
local people.”
The purchase price wasn’t disclosed.
Pound-Maker Investments formed a partnership with the pool and Mohawk
Lubricants Ltd. in 1990 to help finance a major feedlot expansion and
the construction of the ethanol plant.
The locally owned holding company owned 56 percent of Pound-Maker
Agventures, while the pool and Mohawk each owned 22 percent.
The pool later transferred part of its investment to Heartland
Livestock, which it owned with Agricore. The Pound-Maker shares were
not part of the deal when Heartland was sold.
Pound-Maker had acquired Mohawk’s shares in 1999, after a Husky Oil
takeover.
Wildeman said the company may look at another partnership, “if it’s
someone aligned with our thinking.”
He said many communities are looking to Pound-Maker for participation
as they consider building feedlots.
Wildeman said any partnership would depend on what gives the existing
shareholders, about 200 local people and companies, the most benefit.
In the fiscal year ended July 31, 2001, Pound-Maker marketed 55,000
head and 12.5 million litres of ethanol, generating revenues of about
$70 million and net earnings of $1.6 million.
The company used retained earnings to pay for its purchase.
Meanwhile, Sask Pool also announced last week it had sold its 22
percent interest in Saskatoon Livestock Sales Ltd. and its 33 percent
share of Medicine Hat Feeding Company to shareholders in the respective
companies.
