CALGARY, Alberta -- Agrium Inc. announced today that it has increased its offer to purchase all outstanding Royster-Clark Income Deposit Securities to $11.90 (Canadian) cash per IDS, and as a result, has extended the expiry time of its offer until midnight (Vancouver time) on February 8, 2006. This is Agrium's final offer to acquire Royster-Clark IDSs.
A number of major Royster-Clark unitholders have agreed to lock-up and tender to this offer, including:
Together these seven funds have combined holdings of more than 40 percent (13.14 million units) of the 32.5 million outstanding IDSs. Agrium said it believes that less than 300,000 of these IDSs were included in the 30.7 percent (9.97 million units) of IDSs previously tendered. In addition, a number of other Royster-Clark unitholders have indicated to Agrium that they would be willing to tender at this level.
"We are very pleased at the level of support we have received from Royster-Clark unitholders for our final offer," said Mike Wilson, president and CEO of Agrium. "We look forward to a successful closure of our offer, and to combining Royster-Clark's operations with our successful Retail business."
Agrium Inc. is a leading global producer and marketer of agricultural nutrients and industrial products and a major retail supplier of agricultural products and services in both North and South America. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients. Agrium's strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.
Royster-Clark, through its subsidiaries, is one of the largest distributors of each of agricultural fertilizer, seed and crop protection products, and providers of agronomic services, such as product application and technical consulting services, to farmers in the United States.
SOURCE: Agrium Inc. via Business Wire; Royster-Clark.