Glencore International Plc and Viterra Inc. (TSX: T.VT, Stock Forum) announced that they have signed a definitive agreement pursuant to which Glencore has agreed to acquire all of the issued and outstanding shares of Viterra for $16.25 per share in cash by way of a court approved plan of arrangement.
The transaction price represents a premium of 48% over Viterra's closing share price on the Toronto Stock Exchange of $10.98 on 8th March 2012, the day prior to Viterra's announcement that it had received expressions of interest regarding a potential transaction, and 55% over Viterra's 20-trading day volume weighted average trading price of $10.48 per share ending on 8th March 2012.
Viterra is Canada’s largest grain handling company. Glencore is a commodities giant, based in Baar, Switzerland. The transaction values Viterra's equity at approximately $6.1 billion on a fully diluted basis. The transaction will be funded out of Glencore's existing cash resources and available credit facilities.
After easing 0.50% to $15.89 on Tuesday, Viterra has a market cap of $5.91 billion, based on 371.7 million shares outstanding.