Mosaic to repurchase 21.3 million shares from Margaret A. Cargill Trusts for about US$1.2B at Nov. 16 closing price of US$54.58/share
November 17, 2011
– The Mosaic Company (NYSE: MOS - News) 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.