) has reached a deal with certain Cargill family trusts to buy
back roughly 8.2 million Class A shares. The shares to be bought
back are included under the recently announced $1 billion share
The repurchases have been structured in two tranches, first of
which (representing around 2.4 million shares) was completed on
Feb 14 at a price of $46.43 a share. The second repurchase (of
roughly 5.8 million shares) will be executed on Mar 17 at a share
price based on a formula tied to the volume weighted average
price of Mosaic's common shares during a 20-day trading
period starting Feb 14.
Mosaic's board, on Feb 11, approved a $1 billion share
repurchase program, allowing it to buy back Class A or common
shares through direct repurchases or open market transactions.
This is in addition to the earlier announced agreement to
repurchase 43.3 million Class A shares from the Margaret A.
Cargill Foundation and the Anne Ray Charitable Trust ("the MAC
Trusts") in the first seven months of 2014.
Mosaic, in late 2013, landed an agreement to buy back 43.3
million shares from the MAC Trusts. The Minnesota-based company,
last month, completed the repurchase of 21.65 million restricted
Class A shares at a price of $45.77 per share.
The repurchase deal represents a significant step in achieving
Mosaic's objective of having a more efficient balance sheet by
the middle of this year. The company is also looking for other
options to return value to shareholders.
Mosaic's profit slid roughly 79% year over year in the fourth
quarter of 2013 on lower potash and phosphate pricing. Revenues
slipped roughly 8% year over year as the company saw declines
phosphate and potash businesses in the quarter.
Mosaic, which is one of the leading fertilizer makers along
), sees improving market conditions and expects potash prices to
improve later in 2014. It is well placed to leverage the rising
global demand for grain and oilseeds.
Mosaic is a Zacks Rank #3 (Hold) stock.
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