Topic: How To Invest

Stock Pickers Digest Hotline – Friday, July 27, 2018

Article Excerpt

AGT FOOD & INGREDIENTS INC., $18.08, symbol AGT on Toronto, buys and processes a range of pulses—peas, beans, lentils and chickpeas—as well as other specialty crops. The Saskatchewan-based company owns processing plants in Canada, the U.S., Turkey, Australia, China and South Africa. The stock jumped over 35% this week after a management group, led by AGT President and CEO Murad Al-Katib, offered to buy the company for $18.00 a share in cash. That group currently controls about 17% of outstanding shares. Fairfax Financial (symbol FFH on Toronto) and private equity investment firm Point North Capital together own 10.5% of AGT’s common shares. They would retain their holdings in the privatized company. However, AGT’s largest shareholder, investment firm Letko, Brosseau & Associates Inc., controls 18.6% of the company’s shares. It feels the offer undervalues the company. It plans to vote against the takeover. Even after this week’s price jump, AGT shares are now trading above the $18.00 offer price. That suggests investors expect a higher…

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