Moscow – PhosAgro (or "the Company") (Moscow Exchange, LSE: PHOR), a leading global vertically integrated phosphate-based fertilizer producer, announces that it has reached an agreement with the other participants in Metachem to increase PhosAgro’s ownership in Metachem to 100%.
PhosAgro’s total investment within the agreement will amount to RUB 1.2 billion.
The agreement was finalised on 26 November 2012 at a general meeting of participants in Metachem, where the participants unanimously approved a decision to increase Metachem’s authorised capital by way of a new contribution from PhosAgro. This transaction will increase PhosAgro’s direct ownership in Metaсhem’s authorised capital to 66.79%, and PhosAgro Group’s total ownership from 24% to 74.76%.
As a result of the consolidation of Metachem’s production facilities, PhosAgro’s potassium sulphate capacity will increase by 80 thousand tonnes p.a. and sodium tripolyphosphate capacity will increase by 130 thousand tonnes p.a. In addition, PhosAgro’s sulphuric and phosphoric acid production capacities will increase by 4.5% (215 thousand tonnes p.a.) and 4.1% (80 thousand tonnes of P2O5 p.a.), respectively.