AGT Food and Ingredients Inc. could see a management buyout in a move to take the company private.

The Saskatchewan-based food and pulse processor supplies export and domestic markets, with facilities throughout the Prairies, including one in Calgary. The company also has locations in the U.S., Turkey, Africa, Europe, India, China, Myanmar, London and Australia.

The non-binding proposal allows for the management group and certain investors to retain their shares and for current members of the senior management team to remain in place after the buyout is completed.

Under the proposal, President and CEO Murad Al-Katib, along with members of the management group would keep their 4.1 million shares, or approximately 17% of the company. Other investors Fairfax Financial and Point North Capital will also keep their share investment in the company which is another 10.5%.

The management buyout proposal would see $18 Canadian paid for each common share, or roughly a 37% premium to the July 25 close on the Toronto Stock Exchange.

The Board has agreed to establish a committee comprised of independent directors to consider the proposal.

 

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