Potash Corp. Says Equity Stakes Not for Sale at Current Prices

  • Minority holdings in four competitors valued at $4 billion
  • `Timing may not be best' for sale, CEO Jochen Tilk says

Potash Corp. of Saskatchewan Inc., which has been mulling the future of minority stakes in four competitors, said it doesn’t currently plan to sell them because of depressed stock prices.

Its holdings in Israel Chemicals Ltd., Arab Potash Co., Soc. Quimica y Minera de Chile SA and Sinofert Holdings Ltd. have a value of about $4 billion, or $5 per share, Potash Corp. said Thursday in its third-quarter earnings report.

"They all have publicly traded share prices and they are all equally affected by the economic downturn," Chief Executive Officer Jochen Tilk said in a phone interview Thursday. "Timing may not be the best."

Tilk said in July he would consider selling the stakes while Potash Corp. sought to acquire German rival K+S AG. The Canadian company, the largest fertilizer producer by market capitalization, abandoned the bid earlier this month, citing a lack of engagement from K+S and declines in commodity and equity markets.

"Unless we believe they have strategic value or that we will expand on them in order to take over an asset, they could be considered for divestment," Tilk said Thursday. "It’s all about timing in terms of what makes sense."

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