Onexim agrees to buy 21.75% of Uralkali from Kerimov
MOSCOW. Nov 18 (Interfax) - Mikhail Prokhorov's group Onexim has agreed to buy 21.75% of the stock in fertilizer-maker OJSC Uralkali from the Suleyman Kerimov Foundation, Onexim said in a statement.
The parties plan to wrap up the deal as soon as possible. It does not require regulatory approval. The price tag is not being announced by agreement between buyer and seller.
Bloomberg said that in September, people told it that Kerimov was seeking a price based on a market value of more than $20 billion for the whole company. On that basis a 21.75%-stake would be worth $4.35 billion. The stake has a market value of $3.5 billion.
A source close to one of the parties told Interfax that the deal might close in one or two months. "We're at the initial stage, it will take one or two months to close the deal," the person said.
But another source close to the seller told Interfax later the deal could close in as little as a week or two.
A person with knowledge of the situation said Sberbank might provide funding for the deal. A source at Sberbank confirmed this, saying that for deals like this, Sberbank usually provided funding on a loan-to-value basis of between 50% and 70%.
"The purchase of the stake in Uralkali is a long-term investment in a company that is unique from the standpoint of its position in its industry and its role in the world economy. We are certain that the potash industry has strong fundamentals and that Uralkali, as the world's leading producer and the key player in the industry, has considerable potential for growth in value. Onexim Group, in turn, has extensive experience in managing major industrial assets and creating shareholder value in public companies," said Dmitry Razumov, CEO of Onexim.
As of September 24 this year, 21.75% of Uralkali shares belonged to the Suleyman Kerimov Foundation, 4.8% to Anatoly Skurov, and 7% to Filaret Galchev. Chengdong Investment Corporation owned 12.5% and another 53.95% of the company's stock was in free float.
According to unofficial information, Galchev and Skurov have also been negotiating the sale of their shares in Uralkali, Sources have told Interfax that Dmitry Mazepin, owner of UralChem, could buy a stake in Uralkali in partnership with Onexim.
Uralkali controls around 17% of the world potash fertilizer market. It is capable of producing 13 million tonnes of potassium chloride a year.