News Release - October 1, 2008
SALE OF SASKFERCO IS FINALIZED
Premier Brad Wall welcomed Yara International to Saskatchewan today. Investment Saskatchewan and its partner, the Mosaic Company have finalized the terms for a sale of SaskFerco Products ULC. to Yara Canada Holdings Inc., an affiliate of Yara International ASA for approximately $1.6 billion (Cdn).
"This is one of the largest transactions in Saskatchewan's history, and the results will benefit the province in many ways," Wall said. "The use of sale proceeds will be the subject of future announcements."
The sale will provide approximately $783 million to the province for its 49 per cent share in SaskFerco. Investment Saskatchewan has received more than $209 million in dividends since its original investment. The province invested $68.5 million in the company between 1989 and 1993. The agreement for the sale was previously announced on July 14, 2008.
The Minister Responsible for Investment Saskatchewan Lyle Stewart also attended today's announcement.
"Yara is a world leader in the production of nitrogen fertilizer," Stewart said. "This is another exciting relationship developing between our province and a well-respected international company. We are extremely pleased in the confidence Yara has demonstrated in our economy and business environment with this acquisition."
Yara earlier announced that the new entity will continue to be headquartered in Regina and that the company does not expect to make significant changes in staffing levels, strategic orientations or operations. The fertilizer plant located in Belle Plaine will operate as Yara Belle Plaine Inc.
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