Canada’s biggest grain handler plans a share sale worth an expected $400.4 million, partly to finance “future acquisitions.”
Viterra said Monday it will sell 28.6 million common shares at $14 a share to an underwriters’ syndicate led by TD Securities and Genuity Capital Markets, with an option for another 4.29 million shares at the same price anytime up to 30 days after closing.
“Proceeds from the offering will be used for general corporate purposes, and in particular, are expected to be used to fund future acquisitions,” the company wrote.
Although he didn’t specify what Viterra plans to buy, CEO Mayo Schmidt said in a release that the company’s “strategic expansion” will focus on “increasing our valued-added processing capabilities and growing our core operational footprint geographically.
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“Viterra’s market leadership in agriculture, our strong balance sheet and our record of disciplined execution position us to take advantage of this robust agricultural economy,” said Schmidt, who led Saskatchewan Wheat Pool through a long restructuring and refinancing process.
SaskPool came out of that process streamlined with capacity to buy its larger Prairie rival Agricore United last year, merging the two firms into Viterra.
The share offering is expected to close on or around May 9. Viterra’s shares were trading at $14.57 before a halt was called Monday afternoon in advance of its announcement.
