Canada’s Legumex Walker Inc., which owns an 84% stake in Washington State-based canola crushing operation, Pacific Coast Canola, (Glencore Plc owns the remaining shares) has announced it is considering a total sale of the company, or an asset sale, financing, or merger after an announcement that its shares were undervalued and two directors resigned.
Legumex Walker’s financial performance has been held back by railway bottlenecks slowing canola deliveries to its Warden, Washington crushing facility, and the operation’s slow build-up to full production.
Winnipeg-based Legumex posted a loss of C$13.1 million for the first nine months of 2014, and was carrying C$82.2 million in long-term debt as of September 30.
In October 2014, the company forged an agreement with grain handler, Scoular Co. to source canola seed for its crushing plant and to market its canola oil and meal.
Legumex, which also owns 15 crop processing plants across the Canadian prairies, the U.S. Midwest, and China has stated that there is no set schedule for evaluating alternative courses of action.
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