The Mosaic Co. and Cargill announced Jan. 18 that a jointly agreed upon transaction will result in the distribution of Cargill’s 64 percent stake, or 286 million share position, in Mosaic to Cargill’s shareholders and debt holders.
The transaction will enable Cargill to accomplish several important objectives, including maintaining its status as a private company while meeting the diversification and distribution needs of the charitable trusts and foundation formed through the estate planning of Margaret A. Cargill, one of Cargill’s largest shareholders, who died in 2006. The transaction also will enhance Cargill’s credit profile and ensure that the company’s financial results, compensation plans and management focus are fully aligned with the performance of the businesses Cargill directly manages.
The transaction is expected to benefit Mosaic by improving its long-term strategic and financial flexibility, as well as greatly increasing the liquidity of Mosaic’s common stock. As a result of the transaction, there will be no change to Mosaic’s total outstanding shares, the economic rights of the Mosaic shares or earnings per share. The transaction also is not expected to have any impact on Mosaic’s underlying financial performance or current business operations.
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