S&P: Saskatchewan Wheat Pool on positive watch

Standard & Poor's said it placed its ratings, including its B+ long-term corporate credit rating, on Saskatchewan Wheat Pool on CreditWatch with positive implications, following its revised bid for Agricore United.

At the same time, S&P said it revised its CreditWatch placement on Agricore to developing from positive.

The offer from Saskatchewan Wheat Pool, which Agricore's board has determined to be a "superior proposal" to its acquisition agreement with James Richardson International Ltd., consists of C$20 per share in cash, about 2.2 Saskatchewan Wheat Pool common shares or any combination thereof, the agency said.

According to S&P, the proposed combination of Saskatchewan Wheat Pool and Agricore would be positive in terms of market share, synergies and pricing power, with the combined entity to have fiscal 2007 revenues of about C$5 billion and lease-adjusted EBITDA of about C$250 million on a trailing 12-month basis, based on the expectation of a healthy crop year.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.