PLYMOUTH, Minn., July 14 /PRNewswire-FirstCall/ The Mosaic Company
(NYSE: MOS) and Investment Saskatchewan today announced a definitive agreement
to sell Saskferco Products ULC (Saskferco) to Yara International ASA (Yara)
for approximately CDN $1.6 billion (approximately USD $1.6 billion).
"We are pleased to reach an agreement for the sale of Saskferco," said Jim
Prokopanko, President and Chief Executive Officer of Mosaic. "The timely sale
of Saskferco will allow us to focus on our core potash and phosphate
businesses, with the proceeds from the sale to be used for the planned
expansions of our Saskatchewan potash mines and other non-U.S. assets."
"This sale represents fair value for Saskferco," said Minister Lyle
Stewart, the Minister Responsible for Investment Saskatchewan. "We are
pleased to welcome Yara to the Saskatchewan business community. The company's
investment in Saskferco and Mosaic's plans to expand its operations in our
province are very positive events that will further enhance our thriving
economy."
The sale is subject to customary closing conditions, including approvals
under the Investment Canada Act and the Competition Act (Canada). Closing is
currently anticipated in the third calendar quarter of 2008. Further
announcements will be made as events warrant.
CIBC World Markets Inc. is acting as financial advisor and MacPherson
Leslie & Tyerman LLP is acting as legal counsel to Saskferco.
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 phosphates and potash fertilizers and feed ingredients for
the global agriculture industry. More information on the company is available
at http://www.mosaicco.com.
About Investment Saskatchewan
Investment Saskatchewan is a Saskatchewan Crown corporation that has a
mandate to enhance economic growth and diversification through the provision
of investment capital and financing and to ensure prudent management of
commercially viable investments.
About Saskferco
Saskferco Products ULC is one of North America's leading producers of
nitrogen fertilizer. With a production facility in Belle Plaine,
Saskatchewan, Saskferco is a private company primarily owned by The Mosaic
Company and Investment Saskatchewan.
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 the ability to sell
Saskferco and the desirability and effect thereof as well as Mosaic's
strategic priorities and future plans. Such statements are based upon the
current beliefs and expectations of The Mosaic Company's management and
Investment Saskatchewan and are subject to significant risks and
uncertainties. These risks and uncertainties include but are not limited to
the predictability of fertilizer, raw material and energy markets subject to
competitive market pressures; changes in foreign currency and exchange rates;
international trade risks; changes in governmental policy; changes in
environmental and other governmental regulation; adverse weather conditions
affecting Mosaic's operations in central Florida or the Gulf Coast of the
United States, including potential hurricanes or excess rainfall; actual costs
of asset retirement, environmental remediation and reclamation differing from
management's current estimates; accidents involving Mosaic's or Saskferco's
operations, including brine inflows at Mosaic's Esterhazy, Saskatchewan potash
mine and other potential mine fires, floods, explosions or releases of
hazardous or volatile chemicals; changes in financial markets, 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
Contact: Investors, Christine Battist, +1-763-577-2828, for The Mosaic Company; or Brad DeLorey, +1-306-530-1101, for Mosaic and Saskferco; or Jan Carter, +1-306-787-0122, for Government Of Saskatchewan