Potash Corp. of Saskatchewan Inc. has once again increased its holdings in Sociedad Quimica y Minera de Chile S.A. (SQM), the Chilean specialty fertilizer company. In December, PotashCorp’s stake in SQM went to 30.5 percent from 27 percent.
PotashCorp bought 8.4 million Series B shares at a price of US$112.6 million. This was almost double the number of shares it indicated it planned to buy in late November, when it tendered to buy 4.48 million Series B shares for US$58.8 million (GM Nov. 27, p. 10). The tender was until Dec. 20. A company spokesman explained last week that more shares were available than originally thought, so the tender was extended an extra day. PotashCorp says it is not involved in a takeover attempt, that it has simply seen the opportunity to add to its current investment.
PotashCorp has been steadily moving toward the pivotal 32 percent mark. Once a company exceeds a 32 percent stake, it will be required to tender for the entire company.
The new shares should have little impact on control of SQM, as the Series B shareholders only elect one board member. PotashCorp said it does not own enough shares to appoint the Series B director. Currently, under Series A stock, PotashCorp can name three directors, versus four by a group led by Yara International ASA, and one named by Series B.