Stake in Saskatchewan short line part of Great Sandhills Terminal acquisition

Great Sandhills Terminal Ltd. (GST) and the Canadian Wheat Board (CWB) yesterday announced they entered into an agreement through which CWB would acquire all of GST's common stock for $581.98 per share.

GST's board will seek shareholders' approval of the transaction at a meeting expected to be held in August. The acquisition would include GST's high-throughput grain handling facility near Leader, Saskatchewan, and a majority stake in Great Sandhills Railway, a short line that operates 122 miles of track between Swift Current and Burstall, Saskatchewan.

The transaction would complement CWB's recent acquisition of Prairie West Terminal by expanding its assets in western Saskatchewan, CWB officials said in a press release.

"This purchase strengthens [our] growing network of assets across Western Canada and provides the opportunity for an ongoing farmer ownership stake in GST through our Farmer Equity Plan," said CWB President and Chief Executive Officer Ian White. "CWB and Great Sandhills Terminal have worked very well together for many years providing farmers with valuable marketing options."