Agribusiness giant Agricore United (AU) has reached an agreement in principle to sell its 50% share of the Prairie West Terminal JV, a high throughput inland grain terminal located in west central Saskatchewan, to Prairie West Terminal Ltd (PWT).
PWT is the producer group that owns the other 50% share of the terminal. The producer group will now become the sole owner of the 32000 tonne facility and related assets. PWT JV was opened in 1998.
“AU is well represented in the area and the producer owners desired more involvement in the joint venture’s operations. So when PWT asked to buy our share of the facility we agreed it was the best solution for all parties involved,” says Ron Enns, AU’s MD of country operations. “AU has had a good working relationship with PWT and we wish them continued success in the future.”
“The vision of the board of directors and shareholders of PWT to own and successfully operate an inland terminal has taken another step. This is an exciting time for PWT and we look forward to the future,” says Evan Simpson, chairman of PWT.
The transaction is subject to a number of conditions, however the sale is expected to close no later than 31 July 2002. Financial terms of the deal were not disclosed.
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