Local investors now own a larger share of Saskatchewan’s only cattle feedlot and ethanol plant.
Pound-Maker Investments has purchased Mohawk Lubricants’ 22 percent ownership interest in Pound-Maker Agventures, the owner of the feedlot and ethanol plant at Lanigan, Sask.
Mylles Wildeman, the chair of Pound-Maker Investments, said the change was brought on by a desire to have all investors directly interested in the operation.
Belkorp Industries, owner of Mohawk Lubricants, did not have that interest.
“Unlike the other two shareholders remaining in the deal, Sask Wheat Pool and Pound-Maker Investments, Belkorp had no synergies with Pound-Maker …
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“In the old days with Mohawk Oil, Sask. Wheat Pool and Pound-Maker Investments, each of the corporate shareholders were doing business with the company and there was a great deal of synergy amongst the shareholders.”
Mohawk Oil Co. and the pool became partners in the Lanigan operations in 1990 when the ethanol plant was added and the feedlot was expanded.
Pound-Maker Investments held a 56 percent interest and the pool and Mohawk had 22 percent each.
In the late 1990s, Husky Oil bought most of Mohawk’s assets. Husky continued the ethanol supply agreement with Pound-Maker, but did not buy the interest in the Lanigan operation. The ownership interest was transferred to a spinoff company called Mohawk Lubricants, owned by Belkorp Industries of Vancouver.
“Belkorp is more of an investment company and as such there are no synergies, so they were interested in getting out and we were interested in increasing the local control,” said Wildeman.
The financial details of the transaction were not released, but Wildeman said that with increased local control, the company would have more latitude to plan its future.
“A company that is not growing is heading backwards, so there are some growth plans that are easier to accomplish with two corporate shareholders instead of three with one that’s not interested.”
