Potash Corporation of Saskatchewan has purchased 26 percent Arab Potash Company (APC)’s shares for approximately $173 million.
The transaction was carried out through a wholly owned subsidiary of PotashCorp and the Jordan Investment Corporation (JIC). The purchase will be financed using short-term debt and will be accounted for under the equity method of accounting.
As a result of the acquisition, APC's 83.3 million outstanding shares are now 26.9 percent held by JIC, 26 percent by PotashCorp, 21 percent by Arab Mining Company, with the remainder held by other Arab governments, banks and individual investors.
PotashCorp has entered into a shareholders' agreement with JIC that provides it with the right to nominate suitable candidates to fill the four most senior APC management positions. The Board of Directors of APC will have 13 directors of which JIC will have the right to nominate four, including the chair.
APC produces potash from the Dead Sea and is the world'seighth largest potash producer with two million tons of annual capacity. Its primary markets are India, China and Europe. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
