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UPDATE 1-K+S CEO says salt business a strategic pillar

Published 2016-04-21, 06:06 a/m
© Reuters.  UPDATE 1-K+S CEO says salt business a strategic pillar
SDFGn
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POT
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* K+S CEO says business worth more as a whole
* Expects potash prices to rise again after global slump
* K+S open to anchor investors

(Adds details, background)
FRANKFURT, April 21 (Reuters) - The chief executive of K+S
SDFGn.DE on Thursday said the German potash and salt miner's
salt business was a strategic business pillar and affirmed the
group's 2020 operating profit target.
Norbert Steiner said in a statement that K+S was worth more
as a whole than the sum of its individual divisions, dampening
hopes over a stock market flotation or a possible sale of its
salt business.
In early March, the salt and fertilizer supplier had braced
shareholders for a significant drop in operating profit this
year on the back of falling potash prices and German regulatory
restrictions on water waste discharge.
On Thursday, Steiner said he was positive that the downturn
in global potash prices would not persist and added that he
expected strong European demand in the spring season.
In light of the failed hostile takeover attempt by Canadian
rival Potash Corp POT.TO last summer, Steiner said that K+S
remained attractive for investors, as the company's shares were
100 percent free float and its market value slightly below book
value.
Steiner added that K+S was considering all strategic
options, including anchor investors, but didn't give more
details.
K+S shares halved after the failed takeover bid last year,
and Steiner is under pressure on multiple fronts amid a looming
German court case over illegal water waste disposal and
production outages at its Weser river plant.
Steiner, who took office in 2007 and said that he would
retire once his contract runs out in May 2017, said that K+S was
"fundamentally sound" nevertheless.
($1 = 0.8856 euros)

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