PLYMOUTH, Minn., Nov. 17, 2011 /PRNewswire/ -- The Mosaic Company (NYSE: MOS) announced today that it agreed to repurchase 21.3 million shares from the Margaret A. Cargill Trusts for approximately $1.2 billion. The purchase price will be $54.58 per share, the closing price of Mosaic's common stock on November 16, 2011.
This repurchase completes, well ahead of schedule, the disposition of 157 million shares designated to be sold during the 15-month period following the May 25, 2011 split-off transaction with Cargill.
"The purchase of Mosaic shares represents one of the best investment opportunities we've seen and a good use of our excess cash," said Jim Prokopanko, President and Chief Executive Officer of Mosaic. "We are pleased we were able to reach an agreement with the Trusts with respect to this transaction."
The remaining 129 million shares that were part of the split-off transaction remain subject to transfer restrictions until November 2013 when the restrictions are released in three equal annual installments. The structure was designed to facilitate an orderly distribution of Mosaic's common shares formerly held by Cargill. Mosaic has included additional information about the split-off and orderly distribution of the shares in its annual report on Form 10-K for its fiscal year ended May 31, 2011.
UBS Investment Bank acted as financial advisor to the Margaret A. Cargill Trusts in connection with the share repurchase. J. P. Morgan Securities, LLC. has been the financial advisor to Mosaic in connection with the split-off and related transactions.
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include but are not limited to the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; changes in foreign currency and exchange rates; international trade risks; changes in government policy; changes in environmental and other governmental regulation, including greenhouse gas regulation and implementation of the U.S. Environmental Protection Agency's numeric water quality standards for the discharge of nutrients into Florida lakes and streams; further developments in the lawsuit involving the federal wetlands permit for the extension of the Company's South Fort Meade, Florida, mine into Hardee County, including orders, rulings, injunctions or other actions by the court or actions by the plaintiffs, the Army Corps of Engineers or others in relation to the lawsuit, or any actions the Company may identify and implement in an effort to mitigate the effects of the lawsuit; other difficulties or delays in receiving, or increased costs of, necessary governmental permits or approvals; further developments in the lawsuit involving the tolling agreement at the Company's Esterhazy, Saskatchewan, potash mine, including settlement or orders, rulings, injunctions or other actions by the court, the plaintiff or others in relation to the lawsuit; the effectiveness of our processes for managing our strategic priorities; adverse weather conditions affecting operations in Central Florida or the Gulf Coast of the United States, including potential hurricanes or excess rainfall; actual costs of various items differing from management's current estimates, including among others asset retirement, environmental remediation, reclamation or other environmental regulation or Canadian resource taxes and royalties; accidents and other disruptions involving Mosaic's operations, including brine inflows at its Esterhazy, Saskatchewan potash mine and other potential mine fires, floods, explosions, seismic events or releases of hazardous or volatile chemicals, as well as other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.
SOURCE The Mosaic Company