Aus einem Amerikanischen Thread zu dem Thema (14.5.08)
The big news today in the potash arena has to be the fact that BHP Billiton (BHP- NYSE) has purchased their joint venture partner, Anglo Potash Limited (AGP- Vancouver), at C$8.15 per share for a total of C$284 million in cash. For those not familiar with the situation, Anglo Potash owned 25% of a joint venture with BHP Billiton Diamonds Inc., a subsidiary of BHP Billiton. With this transaction, BHP has placed a value on the project of roughly C$1.136 Billion for a project which may come into production in 2014 at the earliest assuming smooth sailing from here on out.
The shareholders of Anglo Potash are being cashed out and thus have no further equity involved in this project unless they reinvest their proceeds from the sale of their shares into BHP, which does not provide the potash exposure that Anglo Potash did. This buyout has the potential to push shares in the junior potash firms much higher now that a firm will cease trading, is being acquired for cash, and the purchasing company has very little exposure to the overall potash market.
Usually mergers in evolving industries with few publicly traded firms tend to push all share prices higher, but with gap in producers and explorers so large, the most upside exposure probably exists in the junior explorers such as Potash One Inc. (KCL- Vancouver), Athabasca Potash Inc. (API- Toronto), Western Potash Corp. (WPX- Vancouver), and Raytec Metals Corp. (RAY- Vancouver). There are some other smaller players with prospective potash lands, but most of these properties are nothing more than moose pasture at this time.
Below is a table of the junior potash explorers:
The big news today in the potash arena has to be the fact that BHP Billiton (BHP- NYSE) has purchased their joint venture partner, Anglo Potash Limited (AGP- Vancouver), at C$8.15 per share for a total of C$284 million in cash. For those not familiar with the situation, Anglo Potash owned 25% of a joint venture with BHP Billiton Diamonds Inc., a subsidiary of BHP Billiton. With this transaction, BHP has placed a value on the project of roughly C$1.136 Billion for a project which may come into production in 2014 at the earliest assuming smooth sailing from here on out.
The shareholders of Anglo Potash are being cashed out and thus have no further equity involved in this project unless they reinvest their proceeds from the sale of their shares into BHP, which does not provide the potash exposure that Anglo Potash did. This buyout has the potential to push shares in the junior potash firms much higher now that a firm will cease trading, is being acquired for cash, and the purchasing company has very little exposure to the overall potash market.
Usually mergers in evolving industries with few publicly traded firms tend to push all share prices higher, but with gap in producers and explorers so large, the most upside exposure probably exists in the junior explorers such as Potash One Inc. (KCL- Vancouver), Athabasca Potash Inc. (API- Toronto), Western Potash Corp. (WPX- Vancouver), and Raytec Metals Corp. (RAY- Vancouver). There are some other smaller players with prospective potash lands, but most of these properties are nothing more than moose pasture at this time.
Below is a table of the junior potash explorers:
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