The time may be right for the Saskatchewan government to sell its share in a provincial fertilizer plant.
Enterprise and innovation minister Lyle Stewart acknowledged recently that the government’s investment in Saskferco would likely fetch a good price, although he wasn’t aware of offers from potential buyers.
“The fertilizer industry is probably at or near the top of their economic cycle,” he said. “I would suggest the company would have substantial economic value at this time.”
The province owns 49 percent of the nitrogen fertilizer plant in Belle Plaine, Sask.
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Mosaic owns 50 percent and Citi-bank Canada holds the remaining one percent.
The plant was built in 1992 and expanded in 1997.
Last fall the plant announced an $84 million expansion to be completed in June 2009.
Stewart said Victoria Park Capital, which manages the government’s investment in Saskferco, has hired an investment bank to value the company.
The investment flows through Investment Saskatchewan, the government agency that handles participation in other ventures such as Big Sky Farms, Bioriginal Food and Science Corp., Terra Grain Fuels and other non-agricultural investments.
Investment Saskatchewan hired Victoria Park Capital to manage the investments.
Stewart said these investments are always potentially for sale if the price is right because they aren’t wholly owned crown corporations, and the money could be used elsewhere.
