Saskatchewan Wheat Pool Inc.

Saskatchewan Wheat Pool Inc.

February 21, 2007 16:06 ET

Pool Responds to JRI and Agricore Proposed Combination

REGINA, SASKATCHEWAN--(CCNMatthews - Feb. 21, 2007) - Saskatchewan Wheat Pool Inc. (TSX:SWP) ("Pool") in response to today's announcement by James Richardson International Ltd. ("JRI"), Ontario Teachers' Pension Plan ("OTPP"), and Agricore United, has indicated that it is currently assessing the proposed transaction.

President and CEO Mayo Schmidt said, "Our bid for Agricore United is still very much alive. Fundamentals of our proposal provide significant value to both Pool and Agricore shareholders. We are reviewing the information that was announced today and we are confident that a Pool proposal can provide more attractive value to AU shareholders."

The Pool will provide additional information to the market once its assessment is complete.

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.

The Pool's exchange offer is being made for the shares of United Grain Growers (also known as Agricore United), a Canadian company, that are listed on The Toronto Stock Exchange. The exchange offer is subject to disclosure requirements of Canada, which requirements 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 some of its officers and directors are located in a foreign country. U.S. shareholders may not be able to sue 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. U.S. shareholders should be aware that, to the extent permissible, the Pool may purchase Agricore United shares otherwise than under the exchange offer, such as in open market or privately negotiated purchases.

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

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