It went public this morning:
North East Terminal Ltd. to sell business assets to
Richardson International Ltd.
March 10, 2011 (Wadena, Saskatchewan) – The Board of Directors of North East Terminal Ltd. (NET) announced today that NET has entered into an asset purchase agreement (the “Agreement”) with Richardson International Limited (“Richardson”), in which NET proposes to sell substantially all of its assets to Richardson on an “as-is where is” basis in exchange for $25,000,000, plus the value of NET’s inventory at closing (the “Purchase Price”). The proposed transaction (the “Proposed Transaction”) is scheduled to close on April 13, 2011 (the “Closing Date”).
The Board believes that the sale proceeds from the Proposed Transaction, after payment of all NET’s liabilities and costs, represents a substantial premium to the current trading value of NET’s shares, and provides all shareholders with an opportunity to liquidate all of their shares that would not otherwise be available.
The completion of the Proposed Transaction is conditional upon, among other things, approval by the shareholders of NET, which will be sought at a special meeting of shareholders to be held on April 6, 2011.
Ultimately, management is proposing that NET will be wound-up and dissolved. The dissolution of NET would have to be approved by the shareholders at a later date.
Management is proposing to distribute the remaining sale proceeds to the shareholders of NET. Management estimates that the amount that each shareholder will receive from the Proposed Transaction and the results of operations until April 13, 2011, after payment of NET’s liabilities and the costs of the sale and winding-up, will range from $715 per share to $760 per share. The final amount returned to shareholders will be dependent on a number of factors which will be detailed in the information circular to be mailed to shareholders and filed on www.sedar.com by March 10, 2011 (the “Information Circular”).
The balance of the proceeds from the Proposed Transaction and any net earnings of NET, will be distributed to the shareholders by way of dividends to be declared at a later date.
Additional details of the Proposed Transaction will be provided in the Information Circular and in the Agreement, a copy of which has been filed on www.sedar.com concurrently with this press release.
Founded in 1991, North East Terminal is a widely held, producer-owned agri-business, with its head office located in Wadena, Saskatchewan. North East Terminal operates a 38,000 mt inland grain terminal at Wadena, SK, and retails fertilizer (dry, liquid, & NH3), chemical, and seed products at Wadena, Kelvington, Foam Lake, and Ponass Lake.
Just wondering what other people's thought's/cooncerns are about this?
North East Terminal Ltd. to sell business assets to
Richardson International Ltd.
March 10, 2011 (Wadena, Saskatchewan) – The Board of Directors of North East Terminal Ltd. (NET) announced today that NET has entered into an asset purchase agreement (the “Agreement”) with Richardson International Limited (“Richardson”), in which NET proposes to sell substantially all of its assets to Richardson on an “as-is where is” basis in exchange for $25,000,000, plus the value of NET’s inventory at closing (the “Purchase Price”). The proposed transaction (the “Proposed Transaction”) is scheduled to close on April 13, 2011 (the “Closing Date”).
The Board believes that the sale proceeds from the Proposed Transaction, after payment of all NET’s liabilities and costs, represents a substantial premium to the current trading value of NET’s shares, and provides all shareholders with an opportunity to liquidate all of their shares that would not otherwise be available.
The completion of the Proposed Transaction is conditional upon, among other things, approval by the shareholders of NET, which will be sought at a special meeting of shareholders to be held on April 6, 2011.
Ultimately, management is proposing that NET will be wound-up and dissolved. The dissolution of NET would have to be approved by the shareholders at a later date.
Management is proposing to distribute the remaining sale proceeds to the shareholders of NET. Management estimates that the amount that each shareholder will receive from the Proposed Transaction and the results of operations until April 13, 2011, after payment of NET’s liabilities and the costs of the sale and winding-up, will range from $715 per share to $760 per share. The final amount returned to shareholders will be dependent on a number of factors which will be detailed in the information circular to be mailed to shareholders and filed on www.sedar.com by March 10, 2011 (the “Information Circular”).
The balance of the proceeds from the Proposed Transaction and any net earnings of NET, will be distributed to the shareholders by way of dividends to be declared at a later date.
Additional details of the Proposed Transaction will be provided in the Information Circular and in the Agreement, a copy of which has been filed on www.sedar.com concurrently with this press release.
Founded in 1991, North East Terminal is a widely held, producer-owned agri-business, with its head office located in Wadena, Saskatchewan. North East Terminal operates a 38,000 mt inland grain terminal at Wadena, SK, and retails fertilizer (dry, liquid, & NH3), chemical, and seed products at Wadena, Kelvington, Foam Lake, and Ponass Lake.
Just wondering what other people's thought's/cooncerns are about this?
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