Thursday, January 24th, 2008
Potash Corporation of Saskatchewan Inc. announce that its Board of Directors has approved its intention to commence, subject to regulatory approval, an open-market repurchase program of approximately 5 percent of its outstanding common shares over a one-year period through a normal course issuer bid. The share buyback will involve the purchase of common shares at the prevailing market price from time to time.
“We have a long history of using our strong cash flow to create value for our shareholders,” said PotashCorp President and Chief Executive Officer Bill Doyle. “We believe there is no better assets in our industry than the ones held by our own company. We have tremendous potential today and in the years ahead, with expected increasing global demand, rising prices for our products and the unique capability to capitalize in this environment. Reinvesting in our own company positions us well to maximize long-term value for our shareholders.”
Under the announced share repurchase program, PotashCorp would be permitted to repurchase up to 15.82 million of its outstanding shares in the open market. The actual number of shares purchased, the timing of purchases and the price at which the shares would be bought would depend on future market conditions and upon potential alternative uses for cash resources. At December 31, 2007, the company had 316,411,209 common shares outstanding. Shares purchased under the program will be cancelled.
PotashCorp also announced today that its Board of Directors has declared a quarterly dividend of US $0.10 per share payable May 8, 2008 to shareholders of record April 10, 2008.