Alltech of Lexington, Kentucky, is bidding $40.75 per share
to buy Ridley, one of Canada’s biggest feed-making companies.
The bid, which totals $521 million, compares with a Toronto
stock exchange share price of $33.94.
The deal has court approval under Manitoba’s Corporations Act and
is due to close this summer if federal regulators and Ridley shareholders
approve.
Fairfax Financial Holdings of Toronto, which owns about 78
per cent of Ridley, has already made a deal committing its shares and its vote
to the Alltech offer.
Ridley’s board has also approved the deal and recommended
that minority stakeholders support it. A circular explaining the deal is to be
mailed to those shareholders next month.
Ridley markets under the Feed-Rite name. It also formed a partnership with Masterfeeds, blending that company's strong presence in Ontario and Quebec with Ridley's focus in Manitoba.
Alltech has emerged as a major global competitor by focusing on probiotics and prebiotics.
