Credit: Shutterstock photoPotash Corporation of Saskatchewan Inc. ( POT ) has announced that is will be commencing a $2 billion share buyback program. The company's Board has approved the buyback program allowing it to repurchase up to 5% of its outstanding common shares over a year.
The share repurchase program will start once it receives regulatory approvals. As per the program the shares can be bought through the facilities of the Toronto Stock Exchange, the New York Stock Exchange or other published markets by means of open market transactions. The purchases may also be made by other means or as permitted by the Toronto Stock Exchange and applicable U.S. securities laws.
The buyers can buy the common shares at the market price at the time of purchase or a price as may be permitted by applicable regulatory requirements. Potash Corp will determine the actual number of common shares that may be repurchased under the program and the timing of any such repurchases.
The move by Potash Corp testifies to its commitment to boost shareholders' value. As part of this, the company, in May 2013, also announced a 25% hike in its quarterly cash dividend from 28 cents per share to 35 cents per share. The dividend will be paid on Aug 2, 2013, to shareholders of record as of Jul 12, 2013.
Potash Corp, which is among the prominent players in the fertilizer industry along with CF Industries Holdings, Inc. ( CF ), Agrium Inc. ( AGU ) and The Mosaic Company ( MOS ), is the world's largest crop nutrient company.
Potash Corp currently retains a Zacks Rank #3 (Hold).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
