Moscow – PhosAgro ("PhosAgro" or "the Company") (MICEX-RTS, LSE: PHOR), a leading global vertically integrated phosphate-based fertiliser producer, announces that it has declined to participate in the 14 June 2012 tender for the privatisation of the Russian Federation stake in Apatit organised by BNP Paribas.
This decision is due to the fact that the tender organiser, BNP Paribas, to date has not disclosed or clarified several significant conditions of the tender, as well as the means of achieving the goals outlined in the Russian Federation Government decree №1920-p dated 3 November 2011. The Russian Federation Government decree, for example, states that the primary goal in granting BNP Paribas the exclusive responsibility for implementing the state decree for organising and executing on behalf of the Russian Federation the sale the Apatit shares currently under state ownership was to establish conditions for attracting investments, supporting the development of financial markets, as well as modernisation and technological development of the economy. However, PhosAgro to date does not understand how the tender organised by BNP Paribas will support achievement of the goals laid out by the Government.
On the eve of the tender the organiser informed PhosAgro that it had declined to accept the Company’s offer, which included a price and other conditions and offers to the Government, despite the fact that these conditions and offers were aimed at implementation of the Russian Federation Government decree №1920-p dated 3 November 2011.
In connection with this situation, and the fact that Acron is currently challenging the Federal Property Management Service’s actions in an attempt to have them declared illegal, PhosAgro has decided not to participate in the tender in order to avoid being caught up in court processes regarding the legality of its acquisition of the Russian Federation Government’s stake in Apatit through the tender scheduled for 14 June 2012.
At the same time, PhosAgro confirms its interest in acquiring the Apatit shares currently owned by the Russian Federation Government, and hopes that the current discrepancies will be corrected.