K+S says capital increase could be used to lure anchor investor
KASSEL, Germany May 11 (Reuters) - German potash miner K+S , which last year fended off a takeover approach by larger rival Potash Corp, is ready to increase its capital to make it easier for a potential anchor investor to take a stake, its chief executive said.
"When you're talking to people who are thinking about taking a larger slice of K+S and to become an anchor investor, you do hear 'I don't want to accumulate 5, 6 or 10 percent over the stock market, that's too much work, you have to present this to me in a more custom-built way', we can now do this via our authorised and contingent capital," CEO Norbert Steiner told shareholders at the annual general meeting on Wednesday.
Separately, finance chief Burkhard Lohr said at the AGM he expected the group's new potash mine in Canada, known as Legacy, to make positive earnings contributions before interest and tax from 2018 on, even though potash prices had fallen below initial projections.
Lower gas and energy prices as well as a lower Canadian dollar, in which most costs are incurred, versus a stronger U.S. dollar, in which future revenues will denominated, are helping the investment case, he added. (Reporting by Ludwig Burger; Editing by Maria Sheahan)
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