Cargill Selling Mosaic (NYSE:MOS) Stake for $24.3 Billion

Cargill announced it is selling it 64 percent stake in fertilizer company Mosaic (NYSE:MOS) for $24.3 billion, probably satisfying private shareholders wanting to cash out of the company, while at the same time making Mosaic a prime takeover target in a booming industry.

Cashing out would come by stock being transferred to Mosaic, which would then be sold off.

Cargill is the largest private company in the world, which doesn't allow for cashing out unless an approved of suitor were to buy up shares of private owners; a difficult task, as shown by this deal.

The shares in Mosaic held by Cargill will be converted to approximately 115 million shares of common stock, 60 million shares of Class A stock, and 111 million shares of Class B stock.

With the exception of Cargill, Mosaic shareholders will receive one share of recapitalized common stock for each Mosaic share they own.

The Class A shares carry with it one vote on everything related to Mosaic, and Class B carry with it 10 votes, but those only can be used when electing directors of the company.

Expectations are it probably won't be long after the close of the deal before Mosaic receives a takeover offer.