Moscow – PhosAgro (or "the Company") (Moscow Exchange, LSE: PHOR), a leading global vertically integrated phosphate-based fertilizer producer, announces that the Company’s management board at its first meeting on 18 February 2013 decided to launch a compulsory buyout of all remaining shares owned by minority shareholders of OJSC Apatit.
PhosAgro CEO and Management Board Chairman Maxim Volkov said: “This decision is fully in line with our strategy of consolidating our ownership of the minority stakes in PhosAgro’s subsidiaries.”
PhosAgro’s management board decided to launch the compulsory buyout offer after the stake in OJSC Apatit’s authorised capital owned by PhosAgro and its affiliated parties surpassed 95% as a result of the mandatory buyout offer made to Apatit shareholders. Today the Company’s stake in Apatit equals 95.95%. PhosAgro has spent a total of RUB 5,904 million on the mandatory buyout.
PhosAgro’s mandatory buyout offer was launched as a result of the Company’s victory in the tender for the Russian Federation’s 20% stake (26.67% of ordinary shares) in Apatit. This resulted in PhosAgro’s ownership of Apatit exceeding 75%, as it increased to 77.57%. PhosAgro’s winning bid of RUB 11,110 million was the highest price offered by tender participants.
PhosAgro plans to finish the consolidation of its ownership in Apatit before the end of this year.