Viterra sets up sales process following potential buyer rumors
The company acknowledged that media rumors have suggested a potential sale price of up to C$16.11 per share.
It said in a statement:“Viterra cautions investors not to rely on these press reports as there can be no assurance that a transaction will occur and that if one does occur, there can be no assurance at what price it will be completed.”
The company’s shares have reached a three-year high of C$16.09 on the Toronto stock exchange, after it said it expects to significantly increase its earnings when Western Canada grain producers gain the ability to market their wheat, durum and barley to buyers of their choice, other than the Canadian Wheat Board, from August 1, 2012.
Viterra said it expects to start realizing “modest benefits” from the fourth quarter of this year, and more significant benefits in 2013. It said annual EBITDA is anticipated to increase by $40m to $50m per annum from 2014 as a result.
“In this new environment, Viterra expects to increase its earnings by leveraging its global grain marketing network in key export growing regions, attracting additional volumes and optimizing its operational efficiencies,”the company said.
On Thursday, Viterra said it has engaged financial and legal advisors to assist with the process, after it said last week that it had received “expressions of interest” from third parties.
Rumored potential buyers include Glencore International, Bunge and Archer Daniels Midland, among others, although Viterra has not confirmed these companies as potential suitors.
