The proposed sale of Gardiner Dam Terminal (GDT) to Viterra that was announced last month was officially given the green light by shareholders last week.
Board members of GDT confirmed the details in a press release that shareholders approved the sale in a December 13 meeting, where they voted in favor of the sale of the GDT grain terminal, as well as GDT’s wholly-owned subsidiary, GDT AgServices Ltd.
Gardiner Dam Terminal’s assets include the grain terminal facility located near Strongfield, as well as GDT AgServices retail outlets located at Strongfield, Broderick and Tullis.
It’s estimated that the purchase price will fall in the range of $27.8 to $30.2 million.
With the approval of shareholders now in place, Viterra – which already owns a 50% stake in GDT’s grain operations – will become the sole owner of “substantially all of the assets of GDT and of its wholly-owned subsidiary, GDT AgServices Ltd.,” the press release noted.
It’s expected that as soon after the sale is completed, Viterra will sell the assets of GDT AgServices to the Riverbend Co-operative Ltd. based in Outlook. That deal will be done under a separate agreement between Viterra and Riverbend.
Riverbend Co-op noted in a prior release that they’re anticipating the “exciting opportunity for our Co-op to significantly increase our presence in the ag sector in central Saskatchewan.”
Earlier news reports stated that GDT’s shareholders could expect to receive between $1,175 to $1,275 per share once the sale has been completed. There are roughly 230 shareholders, most of them local, that hold 23,727 outstanding shares.
Gardiner Dam Terminal employs 24 people at its terminal and ag retail locations. It’s expected that all but two employees will receive offers of employment from either Viterra or Riverbend Co-op.
GDT’s board of directors started exploring opportunities to sell the company back in the fall of 2017 after a number of shareholders expressed interest in liquidating their equity in the company.
Company management is proposing that GDT and GDT AgServices be wound up and dissolved. The official dissolution of Gardiner Dam Terminal will have to be approved by shareholders at a later date.
The sale of GDT’s business assets to Viterra could close as early as December 19, with the sale to Riverbend Co-op expected immediately afterward if all conditions are met.
