Agrium Announces Unocal to Sell Agrium Securities
The following news release was issued by Agrium Inc.
CALGARY, ALBERTA, Oct. 26, 2000 -- Agrium Inc. (TSE and NYSE:AGU ) ("Agrium") announced today that Agrium and Union Oil Company of California (Unocal) have entered into a binding agreement with Newcrest Capital Inc., a Canadian investment dealer, pursuant to which Newcrest would acquire from Unocal for resale 2,627,983 common shares of Agrium and U.S. $50 million principal amount of 6% junior subordinated convertible debenturesissued by Agrium.
Agrium has been advised that Newcrest intends to offer the common shares at a price of U.S. $9.5625 per common share and the junior subordinated convertible debentures at a price of U.S. $23.6875 per U.S. $25 principal amount of debentures.Agrium has agreed to file a prospectus in Canada to permit the sale of these securities.None of the proceeds of the offering will be received by Agrium.
The securities being sold were issued to Unocal by Agrium in connection with Agrium's recent acquisition of certain fertilizer assets from Unocal.
Agrium Inc. is a leading global producer and marketer of fertilizer and a major retail supplier of agricultural products and services in both North America and Argentina.The Corporation produces and markets four primary groups of fertilizers: nitrogen, phosphate, potash and sulphur.The Corporation's strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.
The securities being offered by Unocal have not, nor will they be, registered under the United States Securities Act of 1933, as amended, and except pursuant to an available exemption in the case of the junior subordinated convertible debentures, may not be offered or sold in the United States or to United States persons.
Updated: October 2000