Saskatchewan Wheat Pool Inc.
TSX : SWP

Saskatchewan Wheat Pool Inc.

January 26, 2007 11:20 ET

Pool Increases Subscription Receipt

REGINA, SASKATCHEWAN--(CCNMatthews - Jan. 26, 2007) -

NOT FOR RELEASE IN THE UNITED STATES OR TO US WIRE SERVICES

Saskatchewan Wheat Pool Inc. (TSX:SWP) (the "Pool") announced that it has amended its bought deal agreement with the underwriting syndicate of Genuity Capital Markets and TD Securities Inc. to increase its public market offering of subscription receipts, from $70 million to $100 million.

Yesterday, the Pool announced that it had launched two subscription receipt offerings totaling $195 million. These two offerings, comprising a public market bought deal and a private placement, will provide the funding necessary for the Pool to revise its offer for Agricore United's ("Agricore") limited common voting shares by providing a cash component. The Pool will now issue subscription receipts for a total amount of $225 million. Proceeds not used in the Offers will be used for general corporate purposes.

Under the revised common share offer announced yesterday, Agricore's limited voting common shareholders may elect to receive for each Agricore common share tendered, $11.33 in cash, 1.3601 Pool common shares, or any combination thereof, in each case subject to pro ration. The amount of cash to be paid by the Pool to Agricore common shareholders will be approximately $178 million and the number of Pool common shares to be issued will be approximately 59 million. Assuming full pro ration of these amounts, the result would be $3.00 in cash and 1.0 Pool common share for each Agricore common share.

Saskatchewan Wheat Pool Inc. is a publicly traded agribusiness headquartered in Regina, Saskatchewan. Anchored by a Prairie-wide grain handling and agri-products marketing network, the Pool channels Prairie production to end-use markets in North America and around the world. These operations are complemented by value-added businesses and strategic alliances, which allow the Pool to leverage its pivotal position between Prairie farmers and destination customers. The Pool's common shares are listed on the Toronto Stock Exchange under the symbol SWP.

For U.S. Shareholders

The exchange offers are being made for securities of United Grain Growers Limited (also known as Agricore United), a Canadian company, that are listed on the Toronto Stock Exchange. The exchange offers will be subject to disclosure requirements of Canada, which are different from those of the United States. It may be difficult for U.S. shareholders to enforce their rights and any claim they may have arising under the federal securities laws, since the Pool and the majority of its officers and directors reside in Canada. U.S. shareholders may not be able to take action against a foreign company or its officers or directors in a foreign court for violations of the U.S. securities laws. It may be difficult to compel a foreign company and its affiliates to subject themselves to a U.S. court's judgment.

Forward Looking Information

This release contains forward looking statements that involve certain risks and uncertainties which could cause actual results to differ materially from future results expressed or implied by such statements. Important factors that could affect these statements include, without limitation, weather conditions; producer's decisions regarding total planted acreage, crop selection, and utilization levels of farm inputs such as fertilizers and pesticides; Canadian grain export levels; changes in government policy and transportation deregulation; world agricultural commodity prices and markets; changes in competitive forces including pricing pressures; and global political and economic conditions, including grain subsidy actions of the United States and European Union.

Contact Information

  • Shareholder Contact:
    Kingsdale Shareholder Services Inc.
    Toll Free: 1-866-301-3454
    or
    Saskatchewan Wheat Pool
    Susan Cline
    Media Contact
    (306) 569-6948
    Website: www.swp.com/investor.html