James Richardson International Ltd. has completed its purchase of Canbra Foods, the Lethbridge, Alta.-based canola crushing and refining company.
A JRI subsidiary, called 30686 Alberta Ltd., has bought all the shares tendered to JRI’s offer to
purchase.
JRI now owns, directly or indirectly, 93.4 percent of Canbra’s issued and outstanding common shares.
Following an agreement with the Quebec Securities Commission, JRI has agreed to extend the offer to Aug. 9. This will allow for additional tenders to the offer by shareholders of Canbra.
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The cost of the purchase was $64.1 million or $23 a common share.
When the deal was announced in early July it was described as a friendly takeover. JRI, which also owns Pioneer Grain, said it did not plan any changes at the Lethbridge canola crusher.
The sale came about after Edmonton entrepreneur Peter Pocklington’s Hartford Securities, which owned 52 percent of Canbra, went into receivership.
Receiver manager KPMG Inc. held the company for about a year before tendering the shares to JRI’s offer.
Canbra has been losing money for more than a year, citing low margins between raw seed costs and processed oil. Richardson said all its major competitors have oilseed crushing businesses.
It believes that with its ability to source seed and its risk management skills, it can help turn Canbra’s financial fortunes around.
Agco has low quarter
Saskatoon newsroom
Agco Corp. reported lower sales and profits in the second quarter, compared to the same period last year.
Net sales were $683.5 million (U.S.) and net income was $15.5 million, or 26 cents per share.
For the second quarter of 1998, net sales were $816.1 million and net income was $32.3 million, or 52 cents a share.
Low global commodity prices and reduced export demand hurt the company’s results, said John Shumejda, president and chief executive officer of Agco, which makes machinery brands such as Massey Ferguson and Gleaner.
“As demand for agricultural equipment remains depressed in many regions of the world, Agco continues to hold production levels in line with forecasted demand.
The cost savings initiatives implemented have facilitated a $15.8 million or 19 percent reduction in operating expenses during the second quarter when compared to the prior year, and we are on target for achieving $45-$50 million of operating cost savings for the full year,” said Shumejda in a news release.
Based on current forecasted demand, the company expects the full-year tractor and combine unit production to be about 15 percent below 1998 levels.
ADM revenues fall
DECATUR, Illinois (Reuters) – Food and grain processor Archer Daniels Midland Co. said July 26 its fiscal fourth-quarter revenues fell 21 percent to $3.19 billion (U.S.) from $4.05 billion in the same period a year ago.
The company said its gross profit fell to $278 million from $309 million a year ago, in the fourth quarter ended June 30.
For the full fiscal year, ADM said net sales fell to $14.28 billion from $16.11 billion a year earlier, while gross profit was $1.23 billion, compared with $1.38 billion in fiscal 1998.
South West Terminal pays
Saskatoon newsroom
South West Terminal at Gull Lake, Sask., is paying a dividend of $6 a share on Class B and C shares.
The payment will be made Aug. 31 to shareholders of record as of July 27. In the year ending March 31, the company had net income of $22.55 per share compared to $13.80 the year before.
