Buyer found for North West Terminal grain business—now it’s up to shareholders on whether to accept the offer

Bunge Canada has put an offer on the table to purchase the North West Terminal (NWT) grain elevator in Unity.

A news release puts the purchase price at $27-million, but a final number will be disclosed to the approximately 800 NWT shareholders by the end of this week. The NWT terminal has not been buying grain for over a year due to several years of red ink caused by narrow margins and lower grain deliveries.

The proposed transaction does not include the fermentation and distillation business or NWT’s minority ownership position of the Alliance Grain Terminal at the Port of Vancouver.

The North West Terminal Board of Directors states money from the sale would go to pay down the $42 million debt—adding it will give the fermentation and distillation business the greatest chance of success.

The proposed transaction will be discussed at a special shareholders meeting to be held during the week of October 20th. Two-thirds of voting shares are needed for the transaction to proceed.

CJWW Agriculture Director Neil Billinger spoke to North West Terminal Chief Executive Officer Jason Skinner on September 22nd.