Mosaic Shareholders Support Cargill Divestiture
Stockholders of The Mosaic Company on Wednesday gave the go-ahead for Cargill, Inc., to divest its 64 percent stake in the company.
Approximately 58 percent of the outstanding shares held by non-Cargill shareholders were cast in support of the deal, Mosaic said. Among those who voted (as not all non-Cargill shareholders did), 98 percent favored the transaction.
The all-stock deal is worth almost $20 billion based on Wednesday's closing share price of $68.70-which represents a 3.4 percent decrease from Tuesday's close price.
Minnetonka-based Cargill announced in January that it would spin off its $24.3 billion stake in Plymouth-based Mosaic-a move that will free up cash for Cargill's family foundation while enabling it to remain a private company.
Specifically, Cargill will swap 179 million Mosaic shares for Cargill stock held by Cargill investors, and the other 107 million Mosaic shares will be exchanged for Cargill debt held by third parties. Mosaic shares will then be sold in secondary offerings-and the company will become fully independent for the first time.
“We are gratified by the overwhelming support of our stockholders,” Mosaic President and CEO Jim Prokopanko said in a statement. “This vote of confidence supports our belief that becoming a fully independent company will be good for our stockholders, customers, and employees.”
Mosaic said that it expects the transaction to close by the end of May.
Cargill is Minnesota's largest company based on revenue, which totaled $107.9 billion for the fiscal year that ended in May 2010. Fertilizer maker Mosaic Company is Minnesota's 12th-largest public company based on revenue for the fiscal year that ended in April 2010, which totaled $6.8 billion.