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Packer Olymel bids C$65 mln for No. 2 Canada hog farm
2012年10月18日 / 晚上6点50分 / 5 年前

Packer Olymel bids C$65 mln for No. 2 Canada hog farm

* Receiver open to other bids; sale expected January
    * Soaring feed costs push hog farms into losses

    By Rod Nickel
    Oct 18 (Reuters) - Privately held Olymel LP, one of the
largest Canadian hog processors, has offered to buy Canada's
second-largest hog producer out of receivership for C$65.25
million ($66.58 million).
    Big Sky, which produces about 1 million pigs per year and is
based near Humboldt, Saskatchewan, entered receivership in early
September after piling up C$69 million in debt to secured
creditors. Soaring feed costs left the company unable to pay its
    "It's a strategic possible acquisition for us," said Richard
Vigneault, spokesman for Montreal-based Olymel, which currently
does not raise hogs, on Thursday. "Big Sky is already one of our
suppliers and we want to secure our supplies."
    Other bidders can make offers for Big Sky until Nov. 9,
followed by due diligence, an auction process that can include
raised bids, and the receiver approving a winning offer in
mid-January, according to court documents. The sale process goes
before a Saskatchewan court on Friday for approval.
    If there are no other offers by Nov. 9, the sale with Olymel
will close, said the receiver, Ernst & Young senior
vice-president Kevin Brennan.
    But Brennan expects more offers, with Canadian packer Maple
Leaf Foods and some U.S. meat companies expressing
    "I think we'll get fairly robust interest, given the scale
and how efficient an operator Big Sky is," Brennan said.
    A Maple Leaf spokesman could not be immediately reached.
    A severe drought in the United States has decimated crops
this year, which has led to higher costs for grains used to feed
pigs. Rising feed costs have prompted some farmers to liquidate
their herds, putting short-term pressure on hog prices and
making losses worse for the remaining North American hog
    Canada is the world's third-largest pork exporter.
    Manitoba-based hog producer Puratone Corporation is also up
for sale, after entering court protection from creditors last

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