The Mosaic Company (NYSE:MOS) MOS recently announced the pricing of the earlier declared underwritten secondary offering by Vale S.A. and its affiliate of 34,176,574 shares of common stock of Mosaic.
The total net proceeds to the selling stockholder before expenses were roughly $1.26 billion. The 34,176,574 shares represent all of the shares of common stock of Mosaic owned by the selling stockholder, and none being sold by Mosaic. The selling shareholder will get all of the proceeds from this offering. The offering is likely to close on Nov 9, 2021, subject to customary closing conditions.
Mosaic also noted that it has agreed to repurchase from the underwriter, 8,544,144 shares of common stock, or 25% out of the 34,176,574 shares of common stock that are the subject of the offering. These will be repurchased at a price per share equal to the price at which the underwriter will purchase the shares from the selling stockholder in the offering.
The completion of the share repurchase is conditioned on, and expected to occur simultaneously with, the closing of the offering, subject to the satisfaction of other customary conditions. The offering is not conditioned upon the closing of the share buyback.
Shares of Mosaic have gained 114.1% in the past year compared with a 61.2% surge of the industry.
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The company, in its third-quarter call, noted that it expects strong agricultural commodity pricing trends to continue through the fourth quarter of 2021, driving demand for fertilizers. Farmer economics remain attractive in most global growing regions on strong crop demand, affordable inputs and favorable weather, the company noted.
Mosaic expects upward pricing momentum to continue, with about 90% of fourth-quarter sales committed and priced, and some commitments are as far as the second quarter of 2022 being requested by certain customers.
Zacks Rank & Key Picks
Mosaic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NYSE:NUE) NUE, The Chemours Company (NYSE:CC) CC and Olin (NYSE:OLN) Corporation OLN.
Nucor has a projected earnings growth rate of around 583.5% for the current year. The company’s shares have soared 124.5% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of around 86.9% for the current year. The company’s shares have gained 41.5% in the past year. It currently carries a Zacks Rank #2 (Buy).
Olin has an expected earnings growth rate of around 740% for the current year. The stock has surged 177.4% in the past year. It currently flaunts a Zacks Rank #1.
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