PotashCorp Completes Purchase of Additional Sinofert Shares
Potash Corporation of Saskatchewan Inc. (PotashCorp) purchased an additional 10.01 percent of Sinochem Hong Kong Holdings Limited (Sinofert) for US $126 million, completing the exercise of its option on these shares. This raised PotashCorp's ownership interest in Sinofert to 20 percent and includes the right to nominate a second member to Sinofert's Board of Directors.
PotashCorp initially purchased 9.99 percent of Sinofert for $97 million under a Strategic Investment Agreement signed with a subsidiary of Sinochem Corporation on June 7, 2005. Sinochem, a member of the Fortune Global 500 for the past 15 years, had sales of US $20.4 billion in 2004. The initial agreement gave PotashCorp the right to expand its ownership position in Sinofert no earlier than January 27, 2006. An announcement of the decision to exercise this option was made on January 31, 2006.
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