Your Reading List

Mosaic Announces Special Dividend

U. S. fertilizer maker Mosaic Co. said on Oct. 26 it plans to return about $580 million to stockholders through a special cash dividend that will be financed using cash on hand.

The special dividend of $1.30 per share will be paid on Dec. 3 to stockholders of record as of the close of business on Nov. 12.

The special dividend will result in a roughly $370-million payout to privately held agribusiness and trading conglomerate Cargill, which owns about 64 per cent of Mosaic’s outstanding shares.

“The decision by Mosaic’s board of directors to return a significant amount of cash to its shareholders is a reflection of our strong cash position and the confidence we have in our future business prospects and cash flows,” said chief executive Jim Prokopanko, in a statement.

As of Aug. 31, the company’s balance sheet had a cash position of $2.6 billion.

The company said it plans to continue its capital spending program and maintain an appropriate level of liquidity and financial flexibility.

Mosaic noted it is reaffirming its forecast for fiscal year 2010 capital spending of between $1 billion and $1.2 billion.

Mosaic is planning over the next 10 years to expand its potash production capacity by more than five million tonnes, from about 10 million tonnes today.

Comments

explore

Stories from our other publications