Silvinit not ready for share-split, awaits owner's decision on blocking stake
MOSCOW. June 8 (Interfax) - The management of fertilizer-maker Silvinit , in light of the main owner of Uralkali Dmitry Rybolovlev's plans to sell his controlling interest in his company, is not at this time planning splitting its own shares.
"Some of the shares might fall onto the market, so Silvinit management has suspended any actions with regard to share capital, including the earlier planned split," says a report by RMG following a meeting with the management of Mineral Group, which runs Silvinit.
Rybolovlev holds a blocking stake in Silvinit. The analysts reckon that he might sell his Silvinit interest after selling control over Uralkali.
Silvinit management said last autumn that it was considering a share split in the interests of increasing liquidity.
Mineral Group representatives also said Silvinit planned to publish its 2009 financial to International Financial Reporting Standards (IFRS) sometime in the next two weeks. The company plans to switch to semiannual reporting down the road, and there might be an H1 report sometime in September or October.
The company also said Silvinit is operating with an 86% load on capacity and hopes to maintain that level until year-end. That is roughly twice the workload of last year, and indicates a substantial increase in demand in the company's key sales regions (Southeast Asia, India, and China). Almost all the potash Silvinit sells is on the spot market, including small consignments to India, which has traditionally been a contract market.