Saskatchewan Wheat Pool Inc.

Saskatchewan Wheat Pool Inc.

January 12, 2007 12:38 ET

Pool's Bid for Agricore United Remains on Track

REGINA, SASKATCHEWAN--(CCNMatthews - Jan. 12, 2007) - Saskatchewan Wheat Pool Inc. (TSX:SWP) ("Pool") announced that its offer to acquire Agricore United's ("Agricore") outstanding Limited Voting Common Shares and Series A Convertible Preferred Shares remains on track, in response to Agricore's news release issued earlier today.

Both the Pool and Agricore have been advised by the Canadian Competition Bureau that the Bureau's investigation of the Pool's offer is continuing. The Commissioner has indicated that its review is proceeding well, but it is their expectation that they will require additional time beyond January 24, 2007, to formally respond to the Pool with their analysis.

President and Chief Executive Officer, Mayo Schmidt said, "We are extremely pleased with the response and attention this transaction has received from the Bureau to date. It is important that they have sufficient time to complete their work. The Pool and the Bureau were hopeful that they could reach a preliminary determination within the bid period. Due to the nature of the transaction and the fact that the review spanned the holiday season, the Bureau will require additional time beyond our expiry date to complete their work. The Bureau has indicated we can expect to have formal discussions with them in February."

Saskatchewan Wheat Pool's offer still stands and the Company intends to extend the bid period beyond January 24 to allow for the completion of the Competition Bureau review.

Schmidt added, "Our process remains on track and we are pleased, given the importance of the transaction, that the Bureau is attempting to expedite the process well in advance of their own service standards."

With regard to Archer Daniels Midland Company (ADM), Agricore's largest shareholder, the Pool notes that in Agricore's December 12, 2006 Circular, Agricore states that ADM is open to considering alternative control transactions involving Agricore United, including from SaskPool.

"This is a process and we are committed to working with the relevant parties to see the transaction through to a successful conclusion. We are appreciative of the support we have received from shareholders. This is a significant opportunity for the industry and we will work hard to bring these two great companies together to serve Canadian agriculture," Schmidt added.

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.

Shareholders wishing to tender to the Pool's bid or who require further information may contact:

Kingsdale Shareholder Services Inc.

Toll-free at 1-866-301-3454

Contact Information

  • Saskatchewan Wheat Pool
    Media Contact:
    Susan Cline
    (306) 569-6948
    Saskatchewan Wheat Pool
    Shareholder Contact:
    Colleen Vancha
    (306) 569-4782
    Kingsdale Shareholder Services Inc.
    Toll Free: 1-866-301-3454