Saskatoon-Potash Corp. of Saskatchewan Inc. made a play last week to buy additional shares in Sociedad Quimica y Minera de Chile S.A. (SQM), the Chilean specialty fertilizer maker. PotashCorp took out advertisements in Chilean newspapers seeking to buy 4.48 million Series B shares for US$58.8 million. The offer was open until Dec. 20. If successful, PotashCorp would add 1.7 percent to its existing 27 percent stake in the Series B shares. The company increased its stake to 27 percent in October, acquiring 2 percent, or 6.1 million shares, at a cost of $75.5 million (GM Oct. 23, p. 1). At the time, PotashCorp said that the move did not signal a takeover attempt, that it simply saw an opportunity to add to its investment and took it. PotashCorp Manager of Investor Relations Tim Herrod reiterated this point to Green Markets again Nov. 22, saying PotashCorp has excess cash and is simply taking this opportunity to increase its investment. Herrod explained that PotashCorp was simply making a tender offer for 1.7 percent of the Series B shares and that some have made a big deal out of the incident. He noted that if PotashCorp attained 32 percent of SQM it would be required to tender for the entire company. As for control, he noted that it is currently pretty even, with a group that includes Yara International ASA holding four board seats and PotashCorp three, with one independent Series B director.
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