K+S sells 25% of Legacy mine potash output to Koch Fertilizer
The move is another volley in the firm's takeover battle with Potash Corp.
WICHITA, Kan.—An affiliate of German fertilizer company K+S AG has agreed to sell about one-quarter of the projected output from its Legacy potash mine in Saskatchewan to Koch Fertilizer of Wichita, Kan., for distribution to the U.S. market.
The companies say Koch will have exclusive rights to 453,000 metric tonnes a year of the output from Legacy, which is expected to produce about two million tonnes of potash annually by the end of 2017.
Financial terms weren’t disclosed by the companies, which issued a joint statement August 18.
The German company has been fending off a takeover attempt from Potash Corp. of Saskatchewan.
K+S says that PotashCorp’s offer undervalues its existing business and the contribution from the Legacy project in southern Saskatchewan.
PotashCorp takeover offer valued K+S at about 7.85 billion euros or about C$10.9 billion when it was first confirmed on June 25. But since then, the bid has grown to C$11.4 billion because of the falling Canadian dollar.