German potash and salt miner K+S AG is mulling the sale of a stake in the Bethune potash project in Saskatchewan, which the company values at nearly €5 billion, Reuters reported Dec. 10, citing an unnamed company spokesman.
The company said that it was considering selling stakes in businesses in North America, as ongoing cost-cutting initiatives will not generate enough savings to meet its target of net debt as 2.7x EBITDA by the end of 2020, from the recent level of 4.3x EBITDA.
K+S is leaning toward a stake sale for Bethune, which may be done through an IPO, according to the spokesman. The company, however, ruled out an outright sale of the project.
In November, K+S flagged a further cut in its full-year 2019 potash production, while reporting a year-over-year improvement in third-quarter earnings.