Ceres Global Ag Corp. Advances Acquisition Plans with Strong Shareholder Backing
- Ceres Global Ag Corp. plans a shareholder vote on Bartlett Grain's acquisition proposal at a meeting on June 30, 2025.
- The acquisition offers US$4.50 per share, a 153% premium over Ceres' recent closing share price.
- The Board recommends supporting the acquisition, backed by key shareholders holding 69.3% of Ceres' outstanding shares.
Ceres Global Ag Corp. Moves Forward with Acquisition Plan Amid Strong Shareholder Support
Ceres Global Ag Corp. is taking significant steps toward a proposed acquisition by Bartlett Grain Company, LLC, as it prepares for a special shareholder meeting scheduled for June 30, 2025. This meeting is crucial as shareholders will vote on a resolution to approve the acquisition, which offers a cash purchase price of US$4.50 per share. This price represents a substantial premium of approximately 153% over Ceres' closing share price of C$2.49 on May 16, 2025. The interim court order received from the Ontario Superior Court allows Ceres to proceed with the necessary preparations for the meeting, emphasizing the urgency and importance of the impending vote.
The Board of Directors has unanimously recommended that shareholders support the acquisition, which aims to provide immediate liquidity and mitigate the risks associated with long-term operational uncertainties. The positive sentiment surrounding the deal is bolstered by substantial backing from key shareholders, including VN Capital Management LLC and Princeton Holdings Limited, who together hold about 69.3% of Ceres' outstanding shares and have pledged their support for the proposal. This level of commitment effectively hampers the possibility of alternative offers during the exclusivity period of the agreement, which runs until May 20, 2026.
Ceres Global Ag Corp., headquartered in Golden Valley, Minnesota, boasts a considerable operational footprint with grain and oilseed storage capacity of around 29 million bushels across ten North American locations. The company also has interests in agricultural joint ventures that increase its storage capacity by an additional 16 million bushels. These operational strengths position Ceres favorably within the agricultural sector, and the proposed acquisition is seen as a strategic move to enhance its capabilities while providing shareholders with a lucrative exit option.
In light of the upcoming vote, Ceres encourages shareholders to review the management information circular available on its website and SEDAR+, and to consult their financial advisors regarding the details of the transaction. The Board's recommendation is informed by a fairness opinion from Blair Franklin Capital Partners Inc., which endorses the financial soundness of the offer. Shareholders are urged to engage with the materials related to the meeting to ensure they make informed decisions come June 30, 2025.