Another potash company is making headlines—but this transaction is absent of the contentiousness that marked the previous.
Vancouver-based Potash One Inc. has agreed to a friendly takeover by German-based K+S Aktiengesellschaft at a price of $4.50 per share in cash for total consideration of approximately $434 million.
"Today's announcement delivers on our commitment to maximize value for Potash One shareholders while eliminating further risks inherent in developing and funding the Legacy Project. We have advanced this property from a greenfield discovery to an economically robust, permitted, feasibility stage, solution mining project,” said Paul Matysek, President and CEO of Potash One.
“K+S is a highly qualified global leader with over 100 years of experience in the potash industry and a market capitalization of close to EUR 10 billion (USD 13 billion); they have the technical and operational depth and the proven marketing and sales expertise to successfully bring Legacy forward."
Potash One holds several potash exploration licenses in the Canadian province of Saskatchewan, including the Legacy Project -- an advanced greenfield project to develop a potash solution mine. K+S estimates production capacity of up to 2.7 million tonnes of potassium chloride per year.
The realisation of this production capacity would represent an approximately USD 2.5 billion capital investment into Saskatchewan and create up to 300 highly-skilled jobs. The project headquarters will be located in Saskatchewan, Canada. K+S expects initial production no earlier than 2015.
"Our all-cash offer provides certain and compelling value for Potash One shareholders. The offer complements our growth strategy to expand our potash capacities and our average mine life,” said Norbert Steiner, Chairman of the Board of Executive Directors of K+S.
“Furthermore, the new potash assets together with our existing domestic potash sites will enhance our international competitiveness and as a result strengthen the K+S Group overall, in Europe as well as Overseas."
Source: Potash One
Vancouver-based Potash One Inc. has agreed to a friendly takeover by German-based K+S Aktiengesellschaft at a price of $4.50 per share in cash for total consideration of approximately $434 million.
"Today's announcement delivers on our commitment to maximize value for Potash One shareholders while eliminating further risks inherent in developing and funding the Legacy Project. We have advanced this property from a greenfield discovery to an economically robust, permitted, feasibility stage, solution mining project,” said Paul Matysek, President and CEO of Potash One.
“K+S is a highly qualified global leader with over 100 years of experience in the potash industry and a market capitalization of close to EUR 10 billion (USD 13 billion); they have the technical and operational depth and the proven marketing and sales expertise to successfully bring Legacy forward."
Potash One holds several potash exploration licenses in the Canadian province of Saskatchewan, including the Legacy Project -- an advanced greenfield project to develop a potash solution mine. K+S estimates production capacity of up to 2.7 million tonnes of potassium chloride per year.
The realisation of this production capacity would represent an approximately USD 2.5 billion capital investment into Saskatchewan and create up to 300 highly-skilled jobs. The project headquarters will be located in Saskatchewan, Canada. K+S expects initial production no earlier than 2015.
"Our all-cash offer provides certain and compelling value for Potash One shareholders. The offer complements our growth strategy to expand our potash capacities and our average mine life,” said Norbert Steiner, Chairman of the Board of Executive Directors of K+S.
“Furthermore, the new potash assets together with our existing domestic potash sites will enhance our international competitiveness and as a result strengthen the K+S Group overall, in Europe as well as Overseas."
Source: Potash One
