Calling its stock “significantly undervalued,” Potash Corporation of Saskatchewan plans to raise the ceiling on its recent share repurchase program to 10 per cent of its common shares.
The share buyback program, which PotashCorp announced in January, was originally limited to five per cent of common shares, and that repurchase of cancellation of 15.82 million shares has been “fully completed,” the firm said.
The expansion will allow PotashCorp to buy back and cancel another 15.68 million shares by Jan. 30, 2009.
“We currently have an opportunity to use our strong cash flow to
re-invest in the world’s best potash assets — our own company — at an
attractive price,” CEO Bill Doyle said in a release Thursday.
“We believe our shares are significantly undervalued versus our
long-term potential. By buying back low-priced shares, we will strengthen our
company for the future and reward our long-term shareholders.”
PotashCorp shares (POT:TSX) closed on the TSX Thursday at $162, up from their opening price of $149.70.