SASKATOON (Staff) – Any sale of Alberta’s Lakeside Farm Industries Ltd. to the giant American company IBP must receive cabinet approval, said a government official.
Under provincial regulation, any sale of more than five acres of agriculture land to a foreign owner must go through cabinet.
“The matter is pending cabinet approval,” said Dwight Dibben, executive assistant to provincial agriculture minister Walter Paszkowski.
IBP is the world’s largest producer of fresh beef and pork. It is in negotiations with Lakeside officials to buy the Brooks, Alta., company.
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Lakeside was founded as a feedlot in 1966 by Jim Wilfley and has grown into Alberta’s second largest packing company, opened in 1974.
At present, its owners are president Garnett Altwasser, Tor Wigemyr, John Lozeman, Lakeside employees, Mitsubishi Canada Ltd. and Vencap Equities Alberta Ltd.
Other investors
Vencap, the provincial lending agency, became involved with Lakeside in 1986. As of March, it had invested $12.75 million in the southern Alberta company, according to Vencap documents.
During the same time the provincial government approved $6 million in funding for Lakeside. About $2.5 million has been spent and the remaining $3.6 million has been put on hold, said Dibben.
In addition, the provincial Agriculture Financial Services Corporation is the primary lender in a $17.5 million loan to the company.
Dibben said the government has no concerns about the possible sale of Lakeside to IBP: “The government is no longer in the business of picking winners and losers. This is a positive development for the industry.”
Oleh Hnatiuk, senior vice-president of Vencap, said that organization is satisfied with the sale.
“I think it’s a good thing. Lakeside will have the best possible resources to continue its growth,” said Hnatiuk, a member of the Lakeside board of directors.
“Lakeside is a very successful company doing extremely well. We, the shareholders, are in great shape.”
