K+S Aktiengesellschaft

EANS-News: K+S Aktiengesellschaft
Continuation of growth strategy Potash One agrees to friendly takeover by K+S for CAD 4.50 per share in cash

K+S Aktiengesellschaft / Continuation of growth strategy Potash One agrees to friendly takeover by K+S for CAD 4.50 per share in cash

@@start.t1@@--------------------------------------------------------------------------------   Corporate news transmitted by euro adhoc. The issuer/originator is solely   responsible for the content of this announcement. --------------------------------------------------------------------------------@@end@@

Mergers - Acquisitions - Takeovers/Company Information

Subtitle: K+S Aktiengesellschaft / Continuation of growth strategy Potash One agrees to friendly takeover by K+S for CAD 4.50 per share in cash

Kassel (euro adhoc) - Vancouver/Kassel, November 22, 2010

Continuation of growth strategy Potash One agrees to friendly takeover by K+S for CAD 4.50 per share in cash

• 31.3% premium over the 10-day weighted average trading price  •
Potash One´s Board of Directors unanimously recommends shareholders
tender to      the offer  • Expected production capacity of up  to  2.7
million  tonnes  would  lead  to      approximately USD 2.5 billion
investment in Saskatchewan and the creation  of      up to 300 highly
skilled jobs

K+S Aktiengesellschaft and Potash  One  Inc.  announced  today  that they  have entered into a Support Agreement pursuant to which K+S will  make  an  offer  to acquire all of the issued and outstanding common shares*  of  Potash  One  at  a price of CAD 4.50 per share in cash for  total  consideration  of  approximately CAD 434 million (EUR 311 million).

@@start.t2@@The offer represents a:
      • 24.3% premium to the closing price of Potash One shares on    November  19,
         2010 on the Toronto Stock Exchange;
      • 31.3% premium over the 10-day weighted average trading price of the shares
         up to and including November 19, 2010; and
      • 82.2% premium to Potash One´s share price of CAD 2.47 on August 16,  2010,
         the day prior to Potash Corp´s rejection  of  BHP  Billiton´s  unsolicited
         proposal.

The  Potash  One  Board  of  Directors  has  unanimously  determined  that    the@@end@@

transaction is fair to Potash One shareholders and is in the best   interests  of the company and its shareholders. The Board recommends that shareholders  tender their common shares to the offer. Potash One´s Board  has  received  an  opinion from GMP Securities L.P. that the consideration to be  received  by  the  Potash One shareholders under the offer is fair from  a  financial  point  of  view  to those shareholders.

Potash One holds several potash exploration licenses in  the   Canadian  province of Saskatchewan, including the Legacy Project - an advanced  greenfield  project to develop a potash solution mine. K+S estimates production capacity  of  up  to 2.7 million tonnes of potassium chloride  per  year.  The  realisation  of  this production capacity would represent an approximately  USD  2.5  billion  capital investment into Saskatchewan and create  up  to  300  highly-skilled jobs.  The project headquarters will  be  located  in  Saskatchewan, Canada.  K+S  expects initial production no earlier than 2015.

Paul Matysek, President and CEO of Potash  One,  states:  "Today's   announcement delivers on our commitment to maximize value for Potash One  shareholders  while eliminating  further  risks  inherent  in   developing  and  funding  the  Legacy Project. We have advanced this property  from  a  greenfield  discovery  to  an economically robust, permitted, feasibility stage, solution mining project.  K+S is a highly qualified global leader with over 100 years  of  experience   in  the potash industry and a market capitalization of close to EUR 10 billion  (USD  13 billion);  they  have  the  technical  and   operational  depth  and  the  proven marketing and sales expertise to successfully bring Legacy forward." Norbert  Steiner,  Chairman  of   the  Board  of  Executive  Directors  of    K+S, highlights: "Our all-cash  offer  provides  certain  and  compelling  value  for Potash One shareholders. The offer complements our  growth  strategy to  expand our potash capacities and our average mine life.   Furthermore,  the  new  potash assets together with  our  existing   domestic  potash  sites  will  enhance  our international competitiveness and as a result strengthen the K+S Group  overall, in Europe as well as Overseas."

The transaction is to be effected by way of a takeover bid. Full details of  the offer will be included in a formal offer and take-over  bid  circular  which  is expected to be mailed to the shareholders by mid-December 2010. A  copy  of  the Support Agreement will be  filed  on  www.sedar.com  within  24  hours  of  this release. The transaction is expected to close in the first quarter of 2011.  The offer will be open for acceptance for a period of not   less  than  35  days  and will be subject to certain customary conditions,  including  there  having  been validly deposited and not withdrawn at the expiry time at least 66 2/3%  of  the outstanding common shares* of Potash One. The  transaction  is  not  subject  to "net benefit to Canada" review under the Investment Canada Act.

The directors and officers of Potash One  will  enter  into  lock-up agreements with K+S pursuant to which they have agreed to tender approximately 21%  of  the Potash One shares* to the offer.

The Support Agreement provides for customary deal protections, including a  non- solicitation covenant by Potash One, a five business day right for K+S to  match any superior proposal received by Potash One and payment by Potash  One  to  K+S of a termination fee of CAD 16.5 million  if  the  offer  is  not  completed  in specified  circumstances.  The  transaction  is  not  subject  to  a financing condition.

As a condition of entering into the Support Agreement, an affiliate of  K+S  has subscribed for CAD 30 million convertible secured   debenture  from  Potash  One. The  proceeds  from  the  debenture   will  be  used  to  fund  immediate    water infrastructure construction commitments  related  to  the  Legacy  Project.  The debenture bears interest at the rate of 8% per annum  and  will   mature  on  the earlier of: (a) five business days after  the  date   the  Support  Agreement  is terminated; and (b) November 24, 2011. Subject to regulatory  approval,  at  the option of either the holder or Potash One, the debenture will be convertible  on maturity into Potash One shares at a conversion price of  CAD  4.00  per  share. Potash One will have the right to prepay the debenture  at  any  time in  cash, subject to the holder´s right to elect to have the   prepayment  amount  paid  in shares. Potash One´s debenture obligations will be  secured  by  all  of  Potash One´s assets, and the closing of the purchase will occur on  or  about  November 24, 2010.

National Bank Financial Inc. is acting as exclusive financial advisor to  Potash One and Farris, Vaughan, Wills & Murphy LLP  is  acting   as  legal  counsel.  In addition, GMP Securities L.P. is providing a fairness opinion to  the  board  of directors of Potash  One.  Morgan Stanley  &  Co.  Incorporated  is  acting  as exclusive financial advisor to K+S, and Borden Ladner Gervais LLP is  acting  as legal counsel.

About Potash One Potash One Inc. is a TSX-listed (symbol: KCL) Canadian resource company  engaged in the exploration and development of advanced potash  properties.  The  Company owns 100% of more than 515,000 acres of Potash  Subsurface  Exploration  Permits in Saskatchewan, Canada. It includes the Legacy Project.  For  more   information please visit Potash One´s website www.potash1.ca.

About K+S The K+S  Group  is  one  of  the  world's  leading   suppliers  of  standard  and speciality fertilizers. In  the  salt   business,  K+S  is  the  world´s  leading producer with sites in Europe as well as North and South America. K+S  offers  a comprehensive range  of  goods  and  services  for  agriculture,   industry,  and private consumers which provides growth opportunities in virtually every  sphere of daily life. The K+S Group employs more than 15,000 people. The  K+S  share  - the only commodities stock on the German DAX index - is  listed  on  all  German stock exchanges (ISIN: DE0007162000, symbol: SDF). More  information  about  K+S can be found at www.k-plus-s.com.

* on a fully diluted basis, i.e. including all option, conversion and other subscription rights

Your contact persons:

K+S Aktiengesellschaft Press: Michael Wudonig, CFA

phone: +49 561 9301-1262 fax: +49 561 9301-1666 michael.wudonig@k-plus-s.com

Investor Relations:

Christian Herrmann, CFA phone: +49 561 9301-1460 fax: +49 561 9301-2425 christian.herrmann@k-plus-s.com

Potash One
Paul F. Matysek, M.Sc., P.Geo.
President and Chief Executive Officer
phone:         +1 604 331-4431
fax:  +1 604 408-4799

Further Information for Potash One Inc. Shareholders: Please contact the  Depository  and  Information  Agent  Kingsdale  Shareholder

@@start.t3@@Services Inc., at +1 888 518-6799 toll free in North America, or at +1 416  867-
2272        outside        of        North        America,        or        by         e-mail         at
contactus@kingsdaleshareholder.com.

Media: Joel Shaffer, Kingsdale Communications Inc., +1-416-867-2327.@@end@@

Forward-Looking Statements: Statements in this release that  are   forward- looking statements are subject  to  various  risks  and   uncertainties  as disclosed in the corporations' periodic filings with applicable securities regulators. Such statements represent management's best judgment as of the date hereof based on information currently available. Statements  in  this press  release  other  than purely  historical    information,    including statements relating to the  companies'  future  plans  and  objectives  or expected results, constitute forward-looking statements.  Forward  looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in  the  companies'  business,  including risks inherent in mineral exploration and development.  The   companies  do not assume the obligation to  update  any   forward-looking  statement.  In particular, a decision to place the Legacy Project into  development,  and the implementation of  that   decision,  are  subject  to  numerous  risks, including the ability to access capital  sufficient  to  finance  start-up costs. Additional risks include changes to economic factors  used  in  the feasibility  study  that  may  impact  the  feasibility  of  the   Project, unexpected  limitations  on  the  potential  expansion  of   estimates    of resources and reserves, permitting risks and other economic and processing factors, all of which may be beyond our control.

@@start.t4@@end of announcement                                                 euro adhoc
--------------------------------------------------------------------------------@@end@@

Further inquiry note:
Press:
Michael Wudonig, CFA    
phone: +49 561 9301-1262        
fax: +49 561 9301-1666        
michael.wudonig@k-plus-s.com        

Investor Relations: Christian Herrmann, CFA phone: +49 561 9301-1460 fax: +49 561 9301-2425 christian.herrmann@k-plus-s.com

Branche: Chemicals
ISIN:      DE0007162000
WKN:        716200
Index:    DAX, Midcap Market Index, CDAX, Classic All Share, HDAX,
              Prime All Share
Börsen:  Frankfurt / regulated dealing/prime standard
              Berlin / regulated dealing
              Hamburg / regulated dealing
              Stuttgart / regulated dealing
              Düsseldorf / regulated dealing
              Hannover / regulated dealing
              München / regulated dealing



Weitere Meldungen: K+S Aktiengesellschaft

Das könnte Sie auch interessieren: