Central Saskatchewan’s Gardiner Dam Terminal is expected to go full Viterra within months, now that the Regina grain firm has completed its deal for full control of the facility.
Shareholders in GDT voted Dec. 13 in favour of the deal announced last month in which Viterra buys the half of GDT it doesn’t already own and takes over GDT’s grain elevator just south of Strongfield, about 100 km south of Saskatoon.
The Dec. 13 vote broke down 19,628 (90.1 per cent) in favour to 2,119 opposed, the company reported Dec. 14.
According to GDT, Viterra plans to “fully integrate” the Strongfield facility into its asset network and “implement the Viterra brand across the business” over the next few months.
Kyle Jeworski, Viterra’s CEO for North America, said Dec. 19 the company plans on “making the necessary investments at this location to ensure that it operates smoothly and efficiently today and well into the future.”
The terms of the deal also called for Viterra to sell GDT’s three crop input retail centres at Strongfield, Broderick and Tullis, Sask. to central Saskatchewan’s Riverbend Co-operative.
Riverbend Co-op closed that deal effective Dec. 19 and said it will also implement its brand across the GDT retail outlets over the next few months.
Eligible shareholders in GDT are expected to receive net proceeds of between $1,175 and $1,275 per share from Viterra’s purchase price of $29,658,750, as per an information circular sent last month to shareholders.
Toward that end, a per-share dividend of $380.27, worth just over $9.02 million, was announced Dec. 21 for GDT shareholders, payable Dec. 27.
Since the Dec. 13 shareholder meeting, four members of the GDT board have announced their resignations: Barbara Martens and Brad Norrish, effective Dec. 13, and Bernie Niska and Nick Paulsen, effective Dec. 31.
GDT management’s plan, as announced last month, calls for GDT — as well as the GDT AgServices subsidiary which operated the crop input centres — to be wound up and dissolved.
GDT’s dissolution still must be approved by shareholders “at a later date.”
The company was set up in 2000 as a joint venture between area farmers and Agricore, now part of Viterra. In 2013 the company bought out Viterra’s 50 per cent stake in the input centres. — Glacier FarmMedia Network