US-based fertiliser company Mosaic on Tuesday announced the sale of its stake in a phosphate production venture to Saudi Arabia’s Ma’aden.
Mosaic will receive 111.01-million shares of the Saudi Arabian mining company, valued at about $1.5-billion, for its 25% stake in the Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC).
Comprising a phosphate mine, beneficiation, phosphoric acid, sulphuric acid, power and downstream plants, MWSPC produces about three-million tons of fertiliser products a year.
"We have enjoyed a long and successful partnership with Ma'aden, and we look forward to continuing our work together under this evolved structure," said Mosaic president and CEO Bruce Bodine.
"This transaction provides Mosaic with a transparent value for its investment in Ma'aden, greater capital flexibility in the future, and the ability to contribute expertise to Ma'aden's phosphate operations,” said Bodine.
The agreement generally requires Mosaic to hold its Ma'aden shares for a minimum of three years, with one-third of the shares becoming transferable after the third, fourth and fifth anniversary of the closing.
Edited by: Creamer Media Reporter
EMAIL THIS ARTICLE SAVE THIS ARTICLE
ARTICLE ENQUIRY
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here