REGINA – Saskatchewan Wheat Pool shares will soon be available to the public.
Pool president Leroy Larsen announced last week that 65 percent of the 78,000 pool members had retained some or all of their Class B non-voting shares during the in-house trading period.
These 51,000 members now hold 54 percent, or nearly $200 million worth, of the shares valued at $12 each.
Larsen said the pool’s board of directors agreed to proceed with offering the remaining shares to outside investors. Just more than half of the company’s employees picked up four percent of the shares, leaving 42 percent, or $150 million worth, available.
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Larsen said he was satisfied with the outcome of the in-house trading period.
“I would have liked the number to be higher for the retention, but the interest that is shown and the understanding that we have achieved with the membership in the country has been very gratifying,” Larsen told reporters.
He said the impact of groups who publicly opposed the reorganization was minimal.
“They probably created some uncertainty out there with the kind of information and negative approach that they had to this proposal.”
Larsen said the 54 percent ownership of shares by pool members is a “solid base” from which to work.
An investment syndicate was being formed last week to sell the remaining shares to institutions like insurance companies and mutual funds.
Chief financial officer Lyle Spencer said the fact the available shares are non-voting shouldn’t prevent investment.
“(Investors) need to see potential for growth. They need to see potential for security for their investment, dividends and capital appreciation,” he said.
“Non-voting shares are not uncommon and it may have been more attractive if they were a voting share but certainly they will look at the merits of the stock and if they’re satisfied that this is a company that’s going to perform, the non-voting nature will not be that significant.”
If the $150 million in shares is not picked up by institutions and other investors before the company is listed on the Toronto Stock Exchange, the pool has a $100 million fund to buy back the shares.
Larsen said the share offering will not reach “the point of no return” until after the board has passed a reorganization resolution. Spencer said the board will have to make the decision, but he is confident the listing will go ahead. He said the reorganization resolution will likely be put forward March 27 or 28, because the TSE listing is scheduled to occur March 29.
Meanwhile, Larsen, Spencer and chief executive officer Don Loewen will begin a cross-Canada trip March 8 to talk to investment dealers about the company. A series of country meetings is also planned.
