CWB completes acquisition of terminal
June 10, 2014
by World Grain Staff
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WINNIPEG, MANITOBA, CANADA — CWB announced on June 9 that it has successfully completed the acquisition of Prairie West Terminal Ltd (PWT). The transaction completion follows a May 30 meeting where Prairie West Terminal shareholders voted 99.5% in favor of the transaction.
"CWB's acquisition of Prairie West Terminal is another key step in CWB's strategy to create a network of assets across Western Canada and we are extremely happy with the confidence that Prairie West shareholders have placed in CWB," said CWB president and Chief Executive Officer Ian White. "We have always valued farmers, and the solid support we've received through this vote tells us farmers and the community like the direction CWB is headed.”
PWT facilities included in the acquisition include "The Concrete" (located between the communities of Dodsland and Plenty), Kindersley, Plenty, Luseland and Dodsland. Together, the facilities include over 78,000 tonnes of storage, a high capacity grain cleaning line, high throughput dryer, color sorters and high throughput rail loading.
"CWB now has both feet firmly planted on the ground in Western Canada," said White. "Farmers can be assured that all Prairie West Terminal contracts will be honored by CWB, and CWB customers can continue to sign up CWB contracts and deliver CWB-contracted grain to each of Prairie West's facilities. This is business-as-usual for all of Prairie West's current and future customers."
All tonnes delivered to PWT facilities will be eligible for an equity interest in CWB under CWB's Farmer Equity Plan. Through this plan, farmers who deliver against CWB contracts to any Prairie elevator will be eligible for an ownership stake in CWB (after privatization).