A special commitee of AGT Food and Ingredients Inc. has approved taking the publically traded company private.
The deal is expected to go through in the first quarter of 2019 if two-thirds of investors approve. However, major investment groups have said in the past that they oppose the plan.
The company announced Dec. 4 that a buyer group comprising AGT president Murad Al-Katib and including Fairfax Financial Holdings Ltd. and Point North Capital Inc. will indirectly acquire all of the issued and outstanding common shares of AGT not already held by the group for $18 per share in cash. The group had initially announced its intention to privatize on July 26.
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“Following a fairly lengthy process to consider the interests of all stakeholders of AGT and the future of the company, the management group, together with the other members of the buyer group, are excited at the prospect of a new chapter of AGT,” Al-Katib said in a news release.
A special committee reviewing the privatization deal received advice from independent financial and legal advisers over the past few months. It is unanimously recommending that AGT’s board and shareholders approve the deal. The buyer group represents approximately 17 percent of shares.
Letko, Brosseau and Associates, which is thought to control about 18.6 percent of AGT shares, said this summer the proposal “significantly undervalued” the company.
The deal will be subject to approval from the Ontario courts as well as regulatory approvals in Canada, the United States and certain foreign jurisdictions where AGT operates or owns assets.
