The bond offering will be followed by a share offering without ownership restrictions. This offering of shares, priced $18-20 per share, will raise up to $160 million.
Following the completion of the two issues, residents of Saskatchewan and the provincial government will own about 60% of the company. No individual investor will be allowed to own more than 5% of the company’s equity. Also, non- residents of Canada will not be allowed to hold more than 45% of the shares.
Potash Corp. operates five mines in Saskatchewan with annual capacity for 8.6 million tonnes of potash. A large portion of the company’s output is exported.
The company controls 40% of the world’s potash reserves, sufficient for more than 200 years of mining at current extraction rates. In 1988, the company earned $106.1 million on revenues of $367.8 million.
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