BHP BILLITON ANNOUNCES ALL-CASH OFFER TO ACQUIRE POTASHCORP
Vancouver, Canada; New York, US; London, UK; Johannesburg, South Africa; Melbourne, Australia.
BHP Billiton (ASX:BHP/LSE:BLT/NYSE:BHP and BBL/JSE:BIL) today announced its intention to make an all-cash offer to
acquire all of the issued and outstanding common shares of Potash Corporation of Saskatchewan Inc. (“PotashCorp”)
(NYSE:POT/TSX:POT), at a price of US$130 in cash per PotashCorp common share (the “Offer”). The Offer values the total
equity of PotashCorp at approximately US$40 billion on a fully-diluted basis.
The acquisition will accelerate BHP Billiton’s entry into the fertilizer industry and is consistent with the company’s strategy of
becoming a leading global miner of potash. PotashCorp’s potash mining operations are a natural fit with BHP Billiton’s
greenfield land holdings in Saskatchewan, Canada.
Compelling Offer to PotashCorp Shareholders
The Offer represents an attractive premium of 20 per cent to the closing price of PotashCorp’s shares on the NYSE on
11 August 2010, the day prior to BHP Billiton’s first approach to PotashCorp. It is also a premium of 32 per cent and 33 per cent
to the volume weighted average trading prices of PotashCorp’s shares on the NYSE for the 30-trading day and the 60-trading
day periods ended on the same date, respectively. The Offer is fully funded and provides PotashCorp shareholders with
immediate liquidity and certainty of value regarding the company’s growth potential in the face of volatile equity markets.
Release Time IMMEDIATE
18 August 2010
• Fully funded all-cash offer of US$130 per share for PotashCorp
• Represents a 20 per cent premium to the closing price of PotashCorp on 11 August 2010
• Consistent with BHP Billiton’s strategy of adding Tier 1 assets and further diversification
• Accelerates BHP Billiton’s entry into the fertilizer ind