China BlueChemical Ltd. (SEHK: 3983) announced yesterday that its controlled subsidiary CBC (Canada) Holding Corp. has signed an agreement to acquire about 45.04 million shares newly issued by Western Potash Corp. (WPX) for CAD 0.71 (about HKD 5.35) per share.
After the acquisition, CBC will take 19.9% circulating shares issued by WPX by the date of signing. The 45.04 million shares are reckoned to be acquired by June 14 or earlier.
The agreement says that after WPX has put the milestone project of potash fertilizer (in southern Saskatchewan, Canada) into production for 20 years, CBC or its designated entities will purchase 30% muriate of potash produced by the project annually, or any of the product which are less from the 1 million tons of muriate of potash.
CBC is 60% and 40% controlled by China BlueChemical and Benewood Holdings Corporation. Limited respectively.