BASF to Sell its Shares in K+S Aktiengesellschaft

The sale of the 1.07 billion euro ($1.48 billion) stake in potash miner K+S, will sever ties with its former subsidiary in the wake of their fading business relations in nitrogen fertilizers.

3/11/2011 --- BASF SE intends to place up to around 19.7 million shares of K+S Aktiengesellschaft (representing 10.3% of the company’s share capital) with institutional investors in an accelerated bookbuilding transaction.

With the expected capital gain from the sale, BASF aims to further optimize its balance sheet and continue to reduce its debt as previously announced. The sale of the 1.07 billion euro ($1.48 billion) stake in potash miner K+S, will sever ties with its former subsidiary in the wake of their fading business relations in nitrogen fertilizers.

BASF noted that the 19.7 million shares will not be or have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.

BASF had said earlier this month it was preparing to sell "major parts" of its nitrogen fertilizer business, which is under pressure from low-cost producers in the Middle East.