MINNEAPOLIS-Agribusiness conglomerate Cargill Inc said yesterday it will turn over its 64 per cent stake in fertiliser maker Mosaic Co to Cargill stakeholders and debt holders in an effort to boost Cargill's credit profile and keep it a private company. The companies announced the deal, worth roughly US$24.3 billion, saying it also will help Cargill make sure its management team focuses on businesses it directly runs.
Cargill, one of the largest private companies in the world, owns 286 million shares of Mosaic. Shares in Mosaic closed yesterday at US$85.07, but fell $1.07, or 1.3 per cent, to US$84.54 in after-market trading.
Cargill plans to exchange about 179 million of the Mosaic shares with Cargill shareholders, including some charitable trusts, for at least part of their Cargill stock. The remaining 107 million Mosaic shares will be traded for Cargill debt owned by third parties, the companies said in a statement. At yesterday's closing price, the debt would be worth just over US$9 billion. The deal is expected to close in the second quarter, the companies said. (AP)