AGT Foods of Regina has agreed to be taken private by investors including CEO Murad Al-Katib in a deal that values the company at 436 million dollars.
AGT will proceed with an $18-per-share transaction proposed last July, following the recommendation of a special committee of independent directors and a fairness opinion from TD Securities.
In early trading on the Toronto Stock Exchange, AGT shares were up nearly 12 per cent or $1.86 at $17.70.
The buyers include Fairfax Financial Holdings which partnered with AGT and several First Nations communities to buy the restored rail line and port at Churchill, Manitoba this fall and Point North Capital.
AGT is an international distributor of food and ingredients, as well as a processor of pulses and specialty crops including lentils, peas, chickpeas and canary seed.
The deal must be endorsed by a two-thirds majority vote by shareholders and a simple majority vote by shareholders that are not part of the buyer group.
AGT has agreed to pay an $11.5-million break fee if the deal fails under certain circumstances.