B.C. Sugar, which owns the Rogers sugar beet plant in Taber, Alta. and five other sugar processors in North America, has a new suitor – Vancouver entrepreneur Jim Pattison.
Last week, Pattison, who already owned 28.41 percent of the company, announced he will, through his company Great Pacific Acquisition Inc., offer $14.75 in cash or non-voting exchangeable redeemable shares of Great Pacific for all class A and B shares of B.C. Sugar. The bid will be made June 5.
Pattison’s $261 million bid for all of B.C. Sugar is competing against one from another Vancouver company, Balaclava Enterprises. On April 25 it offered $15 a share for 50.1 percent control of the company.
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B.C. Sugar’s board of directors said in a news release May 20 it supports Pattison’s bid, calling it a better deal for shareholders, even though it appears to be a lower offer.
Balaclava’s bid is structured to take a percentage of the shares each shareholder offers to bring its ownership to 50.1 percent. B.C. Sugar’s board believes the remaining shares would wind up with a lower value after the deal.
The board also said in the release it will seek no further bids, but it will continue dealing with two unnamed parties that have already made contact to determine if they are prepared to make superior offers.
If a better bid comes along, Pattison, whose business empire is estimated to be worth $3.4 billion, has the right to match the offer.
The board of directors has also agreed that if it withdraws its recommendation about the Great Pacific bid or if another company acquires control of B.C. Sugar, it will pay a $5-million break-up fee to Pattison.
B.C. Sugar is North America’s third largest sugar refiner.
It announced a $30 million upgrade to its Taber facility in April. Last January, it closed its Winnipeg plant.
