Mosaic to repurchase shares from Cargill Trusts

Jim Prokopanko, President and CEO, Mosaic.

PLYMOUTH, US: Mosaic Company announced 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 CEO, Mosaic. 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.

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.

(C) WOC News