CALGARY, Alberta, Sept 11 (Reuters) - Potash Corp of Saskatchewan POT.TO said on Thursday it is doubling the size of its stock repurchase program to allow it to buy back as much as 10 percent of its own stock because it considers the shares to be undervalued.
The company, the world’s biggest fertilizer producer, said it will ask the Toronto Stock Exchange to allow it to repurchase an additional 15.68 million shares, worth about C$2.54 billion ($2.36 billion) at the stock’s current market price, before the end of January 2009.
The company already has already completed the buy back of 15.82 million shares, or 5 percent of its stock, the limit allowed under its current normal course issuer bid. Those shares were canceled after purchase.
“We believe our shares are significantly undervalued versus our long-term potential,” Bill Doyle, Potash Corp’s chief executive, said in a statement.
The company’s shares rose C$8.41 to C$162 on the Toronto Stock Exchange on Thursday. The stock has risen 74 percent over the past 12 months. ($1=$1.08 Canadian) (Reporting by Scott Haggett; Editing by Peter Galloway)