The head of AGT Food and Ingredients is leading a push to privatize the company.
Murad Al-Katib and members of his management team have tabled a proposal to buy out shareholders at $18 per share, a 37 per cent premium to the July 25 closing price, AGT announced on Thursday.
Under the terms of the proposal, Prem Watsa’s Fairfax Financial and Point North Capital, two of the company’s prominent investors, would retain their equity stakes if the privatization is successful. The management group, which collectively owns 17 per cent of the float, said Fairfax is willing to provide financing support for the transaction.
AGT Food and Ingredients’ board has agreed to form an independent committee to consider the proposal.
Shares of AGT have been under severe pressure this year, shedding half of their value amid persistent weakness in global pulse prices.
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