PCS sells warrants to pay for Saskterra

A sale of special warrants worth nearly $50 million has been made by Potash Corp. of Saskatchewan (TSE) to fund the company’s recent purchase of Saskterra Fertilizers. Saskatoon-based Potash sold 3,669,000 special warrants at a price of $13.62 each to a underwriting syndicate composed of Wood Gundy, RBC Dominion Securities, and Nesbitt Thomson Deacon.

Each warrant will entitle the holder to receive one Potash common share, subject to certain terms and conditions. The company currently has about 35 million shares outstanding. Proceeds from the sale will be used to pay for the $47- million acquisition of Saskterra Fertilizers from Husky Oil. Saskterra’s main asset is 40% ownership of the Allan potash mine, of which Potash owns the remaining 60%.

Potash Corp. owns a total of five mines in Saskatchewan, and is the largest publicly held producer of potash in the world. The company’s shares have traded recently at $14.50 within a 52-week range of $13-18.