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The global investment giant Capital Group Cos. appears to be a fan of Jochen Tilk.
The Los Angeles-based firm disclosed in a filing this week that it has boosted its stake in Potash Corp. of Saskatchewan Inc. to 83.1 million shares, or just above 10% of the total. It owns nearly double the shares of any other single investor.
In late 2013 and early 2014, Capital Group’s stake in Saskatoon-based Potash Corp. was around 40 million shares. It has skyrocketed since then, a period that roughly coincides with Mr. Tilk joining the company. He was named chief executive in April and took over for the retiring Bill Doyle in July.
Capital Group has a history with Mr. Tilk, dating to his days as CEO of Inmet Mining Corp. Capital Group was Inmet’s third-biggest shareholder when it was acquired early last year by First Quantum Minerals Ltd. for $4.8-billion. That takeover made Mr. Tilk a free agent until Potash Corp. came calling.
Mr. Tilk spent more than two decades at Inmet in various roles and played a key role in the company’s success. He is known for his strong operational skills, though he is far less of a promoter than Mr. Doyle.
“We don’t know whether Capital Group is averaging down their cost of [Potash Corp. shares] or adding to their position because of Jochen Tilk’s new role, but regardless this should be positive for the stock,” AltaCorp Capital analyst John Chu said in a note. He also said that having an “anchor” investor adding to its position sends a good message to other shareholders.
Potash Corp. spokeswoman Denita Stann declined to comment on Capital Group specifically, but said the fertilizer giant “continues to benefit from a long-term-oriented shareholder base with many of our shareholders being invested in the company for decades.”
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