7 Aug 2009 14:15

Regulator clears way for URALCHEM to float shares abroad

MOSCOW. Aug 7 (Interfax) - The Federal Financial Markets Service (FFMS) has granted permission for Russian fertilizer producer URALCHEM to place 125 million common shares outside of Russia, the FFMS said in a statement.

URALCHEM said in a report under Russian accounting standards (RAS) for 2008 that it has charter capital of 500 million common shares with par value of four rubles each. The company could thus float up to 25% of its stock outside Russia.

URALCHEM in April announced plans to sell about 20% of its shares in an initial public offering in the fall. Ahead of the IPO, the company planned to place 45 million new shares with par value of 20 rubles in a private subscription to Cyprus-based ACF-Agrochem Finance Limited and URALCHEM Management Co. The placement could have increased charter capital by 45%, with the new shares accounting for 31%.

But in September the company's board of directors reversed the decision to issue new shares.

URALCHEM was formed in 2007 with chemical assets controlled by Dmitry Mazepin. The company includes controlling stakes in the Kirovo-Chepetsky Chemicals Plant, Perm's Azot and Voskresensk Mineral Fertilizers, and a 7.5% stake in Togliattiazot.

Agrochem Finance owns 99% of URALCHEM, and Chemical Invest owns 1%.