Alliance Grain Traders Income Fund (TSX-V:AGT.UN) is pleased to announce that its wholly-owned operating subsidiary Alliance Pulse Processors Inc. has entered into a memorandum of understanding for the acquisition of the assets of Tradewind Commodities Ltd., a leading pulse and special crops processor located in Milestone, Saskatchewan, approximately 60 km south of Regina.
The Memorandum is an expression of intent subject to the negotiation and execution of formal agreements. Completion of the transaction will be subject to a number of conditions, including the receipt of all necessary regulatory, stock exchange and unitholder approvals and the completion of satisfactory due diligence reviews, in addition to customary closing conditions. The transaction was negotiated at arm's length and is targeted to close on August 1, 2008.
The Memorandum proposes that the Alliance will acquire 100% of the assets used by Tradewind in its business, including land (which will be acquired from an affiliate of Tradewind), buildings, equipment, leases, customer lists, trademarks and goodwill, for cash. The proposed financial terms of the transaction cannot be disclosed until formal acquisition agreements are entered into, due to a confidentiality agreement between the parties.
"This acquisition bolsters the Fund's processing capacity on the Regina Plains and allows us to capitalize on excellent rail service with Canadian Pacific Railways (CP). Tradewind is a strategic asset that will solidify our bulk processing and freight capacity and allow us to have strong linkages North to South into the USA and Mexico," explains Murad Al-Katib, President and CEO of Alliance Pulse Processors and Chairman of the Board of Trustees.
There can be no assurance that the transaction will be completed as proposed or at all. The Fund expects to incur legal, accounting, financial advisory and regulatory costs in connection with the transaction. The Fund will be liable for these costs even if the transaction is not completed. -- www.cnxmarketlink.com
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
