URALCHEM reports acquisition of a 20% stake in URALKALI
Moscow, Russia – 04 December, 2013. URALCHEM, OJSC URALCHEM announces the start of the process of acquisition of securities in Uralkali OJSC constituting 20% of the company’s share capital. Closure of the transaction is expected in the near future.
The purpose of the purchase is to increase the capitalization and profitability of URALCHEM through increases in the value of the purchased shares and the dividend income.
A 20% stake in Uralkali has been evaluated in the transaction at a premium to the current market capitalization. This premium reflects the favourable market outlook and the performance of the company. The transaction is being carried out using credit, with URALCHEM OSJC as the borrower.
The acquisition of a 20% stake is being carried out by buying a number of separate packages including shares owned by Filaret Galchev’s and Anatoliy Skurov’s companies.
Dmitry Konyaev, CEO of URALCHEM, OJSC commented, “We believe in the fundamental attractiveness of the fertilizer industry, both its nitrogen segment, in which URALCHEM has been successfully operating, and the potash segment, which has substantial long-term prospects. Considering various options for the company’s further development through green-field projects or M&A transactions, we have decided to invest in the purchase of securities of Uralkali. This is one of the world’s largest producers of potash, who are exploiting a unique deposit of high-quality raw materials. We have a positive view of the high profitability and future growth prospects of Uralkali. We are confident of the company’s ability to grow organically, creating value for its shareholders”.
“URALCHEM is becoming a minority shareholder in OJSC Uralkali with a large share of the capital, and is willing to cooperate with Uralkali and its management within the existing corporate standards. We intend to participate in the management of the company through the Board of Directors, in which we plan to introduce our representatives. We hope that the experience and expertise we bring, as well as our new initiatives, will be positively received by the Board of Directors of OJSC Uralkali and will be useful for improving the operational management and effectiveness of the company.”