Stake in Belaruskali could be sold in tender or auction
MINSK. Oct 6 (Interfax) - A stake in Belarusian potash fertilizer producer Belaruskali could be sold at a tender or auction if the Belarusian authorities make the decision to conduct such a deal, Head of the Belarusian State Property Committee (SPC) Pyotr Kuznetsov said.
"I think that if there will be a sale, if such a fundamental decision will be taken, it will be a sale through a contest or auction," he said, adding that "as of yet there has been no question of selling a part of Belaruskali."
Commenting on rumors in the Belarusian Internet media that a decision had been made to grant India priority rights in the purchase of 20% of Belaruskali shares, Kuznetsov said: "This is just more nonsense. The Indian government came to us with a proposal: a purchase of 20% of shares for $6 billion or $7 billion, as well as the possibility of signing a big long-term contract on the supply of fertilizers to India. No decisions regarding the Indian government's inquiry have been made."
In August, the local Indian newspaper Mint, quoting two high-level Indian officials, reported that India wants to purchase 20%-25% of the shares in Belaruskali and is ready to pay $6 billion-$7 billion for the stake. India is eager to ensure the stable and long-term supply of fertilizer in order to meet rising demand, the report said.
This information was later confirmed by Indian Ambassador to Belarus Manoj Kumar Bharati. At a press conference in Minsk in August, he said that the Indian leadership is waiting for an answer from the Belarusian government with regards to its proposal.
In June, Belarusian President Alexander Lukashenko valued Belaruskali at $30 billion.
Investors in Russia, Canada and China have also shown interest in acquiring shares in Belaruskali.
Belaruskali is one of the top three potash suppliers in the world. The company's share in world production of potash comes to around 15% and world exports - over 16%. The company produced 8.6 million tonnes of potash in 2010.
Belaruskali was included on the privatization plan in July 2010. Prior to this, production of potash fertilizers was removed from the list of enterprises in exclusive state ownership.