Moscow – PhosAgro ("PhosAgro" or "the Company") (MICEX-RTS, LSE: PHOR), a leading global vertically integrated phosphate-based fertiliser producer, announces the completion of the merger of its subsidiaries Ammophos and Cherepovetsky Azot into PhosAgro-Cherepovets.
As a result of the merger, Ammophos and Cherepovetsky Azot have ceased to exist as legal entities and their shareholders received shares of PhosAgro-Cherepovets, to which all rights and obligations of the merged companies have been transferred. PhosAgro now owns approximately 85.57% of PhosAgro-Cherepovets (exact figure will be disclosed after the PhosAgro-Cherepovets share registrar officially documents the results of the share conversion). Prior to the merger, PhosAgro owned 94.12% of Ammophos and 63.27% of Cherepovetsky Azot.
The Vologda oblast Inter-Regional Inspectorate #12 of the Federal Tax Service officially registered PhosAgro-Cherepovets (and recorded the termination of operations of Cherepovetsky Azot and Ammophos) in the Unified State Registry of Legal Entities on 1 July 2012.
This merger marks another step toward achieving PhosAgro’s strategic goal of maximizing cost synergies by streamlining the Group’s operations.
PhosAgro is considering further consolidation, including the possible merger of its subsidiary Agro Cherepovets into PhosAgro-Cherepovets.
PhosAgro CEO Maxim Volkov said: “This merger is an important step toward streamlining the legal and administrative structures of our subsidiaries, which in turn should help us to further enhance PhosAgro’s cost advantages as a vertically-integrated producer of phosphate-based fertilisers. We expect to achieve important cost synergies from the creation of PhosAgro-Cherepovets by consolidating costs into a single legal entity.”
Shareholders of Cherepovetsky Azot and Ammophos approved the re-organisation of the companies by way of merger at an EGM on 27 February 2012.