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Multibillion-Dollar Asset Monetization Plan for Margaret A. Cargill Philanthropies

Represented a major shareholder and her charities in a multibillion-dollar tax-free split-off of the Mosaic Company from Cargill, Incorporated to provide liquidity following her death.
A cross-practice team of attorneys from our Corporate, Capital Markets, Trusts and Estates, and Tax Groups provided representation to the Margaret A. Cargill Philanthropies in devising and implementing a multibillion-dollar asset monetization plan. When Margaret A. Cargill died, she was the largest individual stockholder of Cargill, Incorporated, and all the shares were left to her Philanthropies. The cornerstone of the asset monetization plan was the $18.6 billion split-off of the Mosaic Company from Cargill, which included the $7.5 billion secondary public offering by The Mosaic Company, recognized by Thomson Reuters International Financing Review as the 2011 U.S. Equity Deal of the Year. The split-off was consummated in May 2011. At the closing, the Mosaic shares held by Cargill were valued in total at $18.6 billion, of which the Philanthropies received shares valued at $7.4 billion. Also at the closing, the Philanthropies sold 7.5 million shares as part of the $7.5 billion secondary public offering. In September 2011, the Philanthropies sold 20.7 million shares for approximately $1.2 billion in another secondary public offering, and in November 2011, the Philanthropies sold an additional 21.3 million shares back to Mosaic for approximately $1.2 billion. The Philanthropies still have 65 million shares remaining to be sold. The aggregated proceeds from these transactions will result in the Margaret A. Cargill Philanthropies being among the largest charitable foundations in the country.