The Mosaic Co., a prominent Tampa-based fertilizer producer, announced its plan to sell a substantial stake in a Saudi Arabian joint venture, reinforcing its strategic financial goals and partnership dynamics. The deal involves transferring a 25% stake in the Ma’aden Wa’ad Al Shamal Phosphate Co. to the Saudi Arabian mining company Ma’aden in exchange for approximately 111 million shares valued at about $1.5 billion.
Mosaic Selling $1.5B Stake In Saudi Mining JV : Details of the Transaction
The agreement, which was made public on Tuesday, indicates that Mosaic will receive the shares as part of a subscription agreement necessitating a minimum three-year holding period. This stipulates that one-third of the shares can be transferred annually starting after the third year of closing. Mosaic, represented by the legal expertise of Simpson Thacher & Bartlett LLP, views this deal as a way to secure a “transparent value” for its investments while enhancing its capital flexibility moving forward.
A Decade of Partnership
Initially formed in 2013, the collaboration between Mosaic and Ma’aden aimed to exploit phosphate resources in Northern Saudi Arabia, primarily for fertilizer production. Bruce Bodine, Mosaic’s President and CEO, emphasized the continued cooperation post-transaction, stating, “We have enjoyed a long and successful partnership with Ma’aden, and we look forward to continuing our work together under this evolved structure.”
