Potash Plans 3-For-1 Stock Split, Doubles Dividend
Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer company, said it would double its quarterly dividend due to its confidence in the crop nutrient market. It will also split its shares to boost liquidity.
The dividend will be 21 cents per pre-split share, up from 10 cents, the Saskatoon, Saskatchewan-based Potash Corp. said in a statement. It has approved a three-for-one stock split that will reduce issued shares to 853 million. The new shares will begin trading on Feb. 14 in Toronto and on Feb. 25 in New York.
Potash Corp. sold $1 billion of debt in November to help pay for a planned stock buyback after BHP Billiton Ltd. withdrew a $40 billion takeover offer. Global potash sales probably jumped 80 percent last year to 52 million metric tons, driven by imports in Brazil, China and India, the International Fertilizer Industry Association said Dec. 21.
“The doubling of our dividend reflects the confidence we have in the long-term drivers of our business and further commitment to using our strong cash flow to create value for our shareholders,” Potash Corp. Chief Executive Officer Bill Doyle said in the statement.
To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net
To contact the editor responsible for this story: Andrew Hobbs at ahobbs4@bloomberg.net
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