Silvinit valued at $7.8 bln for Uralkali merger
MOSCOW. Dec 20 (Interfax) - OJSC Silvinit (RTS: RTS: SILV) is valued at around $7.8 billion for the purposes of a merger with fellow potash miner Uralkali .
Uralkali, which plans to buy 20% of Silvinit for $1.4 billion, said in a presentation that the other 80% ordinary shares are valued at $5.5 billion. It said 100% preferred shares are worth $900 million.
Uralkali says in the presentation that it aims to close the acquisition of the 20% by the end of February. Shareholders dissenting against the deal will have until March 22 to tender their shares for repurchase, and Uralkali and Silvinit will have until April 24 to buy them. The merged company should be set up by May 2011, by which time Silvinit will cease to exist.