Saskatoon-Athabasca Potash Inc. said May 13 that its board of directors has adopted a shareholder rights plan to ensure that all shareholders are treated fairly in connection with any takeover bid for the company. The plan will provide shareholders with adequate time to properly assess a takeover bid without facing undue pressure. The board will be given additional time to consider any takeover bid and, if applicable, to explore other alternatives to maximize shareholder value. A permitted bid must be made by way of a takeover bid circular prepared in compliance with applicable securities laws and, in addition to certain other conditions, must remain open for 60 days. In the event a takeover bid does not meet the permitted bid requirements of the plan, the rights issued under the plan will entitle shareholders, other than any shareholder or shareholders involved in the takeover bid, to purchase additional common shares of Athabasca at a significant discount to the market price of the common shares at that time. Athabasca is not adopting the plan in response to, or in anticipation of, any specific takeover bid or proposal to acquire control of the company.
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K+S reports best 1Q; earnings may triple in 2008
Kassel, Germany-The K+S Group says the first quarter ending March 31, 2008, was the best first quarter in its history. Operating earnings were E226.3 million on revenues of E1.2 billion, up from the year-ago E103.3 million and E944.7 million, respectively. Earnings after taxes moved up to E162.6 million from the year-ago E62.6 million. Citing higher potash and nitrogen prices, the company said operating earnings (EBIT) may triple for the year 2008.
PetroVietnam, OCP sign MOU for new DAP plant
Casablanca-PetroVietnam Fertilizer and Chemical Joint Stock Co. (PVFCCo), a member of the Vietnam Oil and Gas Group, and Office Cherifien des Phosphates (OCP) of Morocco have signed a Memorandum of Understanding to cooperate on the construction of a new DAP plant in Morocco. The plant would reportedly produce 660,000-1 million mt of DAP, with a total investment of US$600 million. The completion is expected in 2011.
Potash One reports deal with Timer Explorations
Vancouver-Potash One Inc. reports that the two potash permit applications (KP 416 and KP 417) sold by the company to 0821474 B.C. Ltd. (Numberco), a subsidiary of Peninsula Merchant Syndications Corp. (Peninsula), a private company at arms length to the company and its directors and officers, have been sold by Peninsula to Timer Explorations Inc. (Timer), a reporting issuer in British Columbia whose common shares are listed on the TSX Venture Exchange and which is also at arms length to the company and its directors and officers. To acquire the permits, Timer will purchase all of the outstanding shares of Numberco. This acquisition by Timer is part of a larger transaction pursuant to which Timer will also complete (i) a subdivision of its shares on a 2 new shares for 1 old share basis, (ii) an $8.4 million private placement of units at a price of $0.35 per unit, with each unit consisting of one post-split common share and one post-split common share purchase warrant entitling the holder to purchase a further post-split common share at a price of $0.50 per share for a period of two years, (iii) the change of the name of Timer to “Potash North” or another name reflective of the new business of Timer, and (iv) the appointment of new directors and officers to the board of Timer. Potash One holds rights to purchase a sufficient number of units in the private placement such that it will hold approximately 13 percent of the outstanding common shares of Timer and up to 20 percent of any equity securities. It can also nominate a director to the Timer board. It has nominated Paul Matysek to the Time board to oversee its investment. “The Timer transaction provides Potash One with an excellent opportunity to make a significant investment at the ground floor level, in a newly established Saskatchewan potash exploration company,” said Matysek, Potash One president and CEO. For more information, see www.potash1.com.
ACCC approves Incitec Pivot/Dyno Nobel deal
Sydney-The Australian Competition and Consumer Commission (ACCC) on May 15 gave the green light to Incitec Pivot Ltd.’s proposed A$2.6 billion acquisition of Dyno Nobel Ltd.
Migao reports no major damage from quake
Toronto-Migao Corp., a China-based leading specialty potash fertilizer producer, said May 13 that all local companies in the province of Sichuan were shut down for one day as a precaution after the major earthquake on May 12. Migao has a potassium nitrate facility in the province. The government needed time to inspect gas pipelines throughout the area. Initial damage reports from Migao’s Sichuan facility shows no major structural damage to the plant or equipment. Although a section of a 2-meter tall storage wall did collapse, it reportedly will not interfere with operations.
Massachusetts phos site to get radiation testing
Boston-State environmental officials have requested and received a positive response from ConocoPhillips on testing for radiation at a former phosphate producing site that Conoco operated between 1963 and 1967, when it was sold to condominium and marina developers. “ConocoPhillips has agreed to do the screening (for radiation) and is expected to submit a work plan which we are still waiting for,” Joe Ferson, spokesman for the Massachusetts Dept. of Environmental Protection, told Green Markets. Ferson said the state hasn’t had a lot of experience with this type of site and is relying on guidance from EPA on dealing with the 68 acres, which is called the Weymouth Neck hazardous waste site. ConocoPhillips engineers had reported that only fertilizer plants that used processes introduced in the 1970s – after the Weymouth facility was closed – were at risk for radiation pollution. But Stephen Johnson, deputy regional director for the state environmental agency, advised ConocoPhillips that radioactive materials can be associated with fertilizer manufacturing sites. “In light of this,” Johnson stated, “phosphate fertilizer factories are typically screened for radionuclides as part of the assessment of the site.” Although the company earlier had reported that cleanup had been competed and the site posed no significant risk to people living or working on it, the state responded on April 24 with the request for a work plan. The site includes a park, condominiums, a marina, and undeveloped property.
Charges filed against Florida teenager
Tampa-Charges have been filed against a teenage boy who caused an ammonia gas leak in November by drilling a hole into a section of a 30-mile-long pipeline near Tampa. The State Attorneys Office in Hillsborough County released no information on the charges or the young man, because he is a juvenile. The pipeline supplied ammonia to Mosaic’s New Wales phosphate processing plant in Polk County. The youth, who suffered burns from the escaped gas, said he was looking for treasure – which he had been told had been placed there by an armed robber who had committed suicide – buried in the pipe under a bridge crossing the Alafia River.
Migao reports receipt of patent
Toronto-Migao Corp. said May 6 that it has received a patent protecting the company’s process for producing potassium nitrate. Patent number 2005100212241 has been issued by the State Bureau of Intellectual Property Rights of China to Sichuan Migao for its Double Decomposition Process, a method of producing potassium nitrate and ammonium chloride. Sichuan Migao, one of Migao’s wholly owned subsidiaries operating in Chengdu, Sichuan Province in China, produces 80,000 mt of potassium nitrate annually. The national patent has been granted for the Double Decomposition Process of producing potassium nitrate and ammonium chloride using potassium chloride and ammonium nitrate. The nature of the patent related to a re-circulating vaporization and crystallization process under specific temperature and pressure conditions. “This is an important accomplishment for Migao as a quality leader in our industry. This has been a lengthy and thorough process and I congratulate our R&D staff for their success in this achievement,” said Mr. Liu Guocai, Migao’s CEO. “This patent protects our economic efficiency and environmentally responsible process, as well as the ability to consistently and accurately deliver high quality products, which is most important to our customers.”
Management Briefs
Stockholders of CF Industries Holdings Inc. on May 13 elected three members of the board of directors and ratified selection of KPMG LLP as the company’s independent registered public accounting firm for 2008. Re-elected to serve as directors for a three-year term were Wallace Creek, William Davisson, and Stephen Wilson. The three directors have all been members of the company’s board since its initial public offering in August of 2005. Creek served as controller of General Motors Corp. from 1992 to 2002, completing a 43-year career with the company. He is chairman of CF’s audit committee. Davisson has served as the Growmark Inc. CEO since 1998. Wilson is CF’s chairman, president, and CEO. KPMG served as the company’s independent registered public accounting firm for the year ended Dec. 31, 2007.
David Crank was recently named national accounts manager for the Green Professional Products Division of Bayer Environmental Science in Research Triangle Park, N.C. Crank will be responsible for several national accounts in the golf, lawn care, and formulator business segments. He joins national account manager Rich Burns in handling specific national accounts for Bayer Environmental Science. Previously, Crank was the lawn care and landscape market specialist in the Mid-Atlantic states. Prior to joining Bayer eight years ago, Crank worked as a marketing research consultant for Novartis and previously, for American Cyanamid.