Potash Corporation Plans Buyback Of $2 Billion Stock

AHN News Staff

Saskatoon, Saskatchewan, Canada (AHN) – Potash Corporation of Saskatchewan announced Tuesday it will buy back $2 billion worth of its stocks from shareholders. The announcement followed Ottawa’s decision to reject a $40 billion takeover of Potash by Australian mining giant BHP Billiton.

With the repurchase and cancellation of millions of common shares, Potash will reduce outstanding shares and will cause an increase in return on investment for remaining stockholders.

Potash will buy back about 14.57 million common share or about 4.9 percent of its public offering. The firm previously suspended the $13 billion repurchase program when the company was offered for sale to foreign and domestic buyers.

Meanwhile, Saskatchewan Brad Wall is singing a different tune by supporting an Ottawa legislation that would permit foreign firms to secure a controlling share in the province’s uranium mines. Wall vehemently opposed the BHP Billiton offer on the ground that the mining giant’s bid would lead to potential revenue losses for Saskatchewan.

Wall stressed the province welcomes foreign investments in Saskatchewan’s uranium industry, but would oppose majority foreign control. Saskatchewan rules limit foreign ownership in the industry to 49 percent, which would be lifted if the federal legislation would be passed by the Canadian Parliament.

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