Sociedad Quimica y Minera de Chile Billionaire Chairman Quits, Bondholders Approve

Bloomberg reported that investors have reacted favorably to billionaire chariman Julio Ponce quitting his job at Sociedad Quimica y Minera de Chile (NYSE:SQM).

As quoted in the market news:

Amid allegations of unlawful political contributions and tax fraud, SQM’s notes sank to a five-year low last month as Ponce’s handling of the probe led Potash Corp. of Saskatchewan, the company’s largest shareholder, to withdraw its board members. Last week, after more than two decades as chairman of the fertilizer exporter he controls, Ponce quit.

His departure is helping revive investor confidence at a company that also saw its chief executive officer become a casualty of the investigation last month. SQM’s $250 million of bonds due 2025 have returned 3.9 percent in April, the most in Chile and exceeding the average for emerging markets.

Santiago-based SQM said March 30 it made $11 million of payments over five years that the company can’t justify as tax-deductible expenses. Prosecutors are investigating how much of that money was given to politicians and political campaigns in violation of electoral financing rules.

Click here to read the full Bloomberg report.