The British Columbia Investment Management Corp. (bcIMC) has entered into a definitive agreement to acquire 99.9 per cent stake in Glencore Agricultural Products for a consideration of US$624.9 million in cash.
The transaction is in addition to the sale of a 40 per cent stake of the global agricultural company to the Canada Pension Plan Investment Board for US$2.5 billion, which was announced on April 6, 2016. Glencore will then hold a 50.01 per cent stake and the business will continue to be run by the existing management team.
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In a news release, bcIMC said it will be able to appoint one director to the board of Glencore Agricultural Products and will be granted certain reserved matter rights consistent with its shareholding.
“Our investment in Glencore Agri provides an excellent opportunity for bcIMC to increase and diversify our exposure within the agricultural space, a sector we view as critical to supporting rising levels of global prosperity,” says Lincoln Webb, senior vice-president, infrastructure and renewable resources at bcIMC.
“Investing with strong partners and alongside a world-class management team, we believe our long-term investment views and global perspectives align well with the further growth and development of a leading agricultural platform.”
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The transaction, which is expected to close during the second half of 2016, is subject to customary regulatory approvals and closing conditions.