REGINA, SASK. — Two days after disclosing it is in discussions to acquire Australia-based ABB Grain Ltd. for as much as A$1.6 billion ($1.1 billion), Viterra Inc. on Wednesday said it will raise C$450 million ($374 million) in equity through a subscription receipt offering.
Under terms of the offering, each subscription receipt will cost C$8, with each receipt representing the right of the holder to receive, for no additional consideration, one common share of Viterra upon the acquisition closing of ABB Grain Ltd.
"We feel it is important to put ourselves in a position to act quickly should due diligence and negotiations result in a strategic transaction," said Mayo Schmidt, president and chief executive officer. "Having this offering underwritten illustrates the market’s confidence in this team’s ability to carefully assess opportunities and execute strategies that deliver value for shareholders."
Closing of the subscription receipt offering is expected to take place on May 13. If a definitive agreement between Viterra and ABB is not announced by June 30, acquisition closing does not occur before Nov. 30, or the acquisition is terminated at an earlier time, Viterra said holders of the receipts will receive refund of the full purchase price of the subscription receipt, along with pro rate share of interest earned between the closing date and the termination date.