Mosaic announces new $1.5bn share repurchase authorization
The Mosaic Company (NYSE: MOS) announces that its Board of Directors approved a new share repurchase authorization in the amount of $1.5 billion, allowing Mosaic to repurchase Class A or common shares, through open market purchases, accelerated share repurchase arrangements, privately negotiated transactions or otherwise. The new authorization has no set expiration date, but it is expected to be completed over the next two to three year period depending on market conditions. The remaining amount under the Company's current authorization has been cancelled.
As part of the new authorization, Mosaic intends to execute an accelerated share repurchase (ASR) agreement in the near term for $500 million. The ASR agreement is expected to be completed by the end of September, 2015.
"This new authorization, combined with our increased dividend, underscores confidence in our investments and Mosaic's ability to grow cash flow across business cycles," said President and Chief Executive Officer Jim Prokopanko. "Effectively allocating our capital to generate attractive long-term returns and returning excess capital to shareholders are top priorities."
"We're happy to announce a $1.5 billion authorization which fits with our long articulated capital management philosophy. As we have said, Mosaic will continue with a balanced approach to capital by investing in our assets, growing our business when compelling opportunities arise, increasing our dividend as our business grows, and returning excess cash to shareholders," said Rich Mack, Executive Vice President and Chief Financial Officer. "Mosaic's prudent capital allocation will be an integral part of creating long-term, sustainable value for our shareholders, and our future cash flow generation looks promising."
Additionally, the Board of Directors declared a quarterly dividend of $0.275 per share on the Company's common stock, which is an increase from the previous quarterly dividend of $0.25. The dividend will be paid on June 18, 2015, to stockholders of record as of the close of business on June 4, 2015.
The declaration and payment of any future dividends is subject to approval by Mosaic's Board of Directors. There can be no assurance that the Company's Board of Directors will declare future dividends.