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Uralkali Owner Said to Seek Sale Accord as Soon as Next Week
By Yuliya Fedorinova and Irina Reznik
November 15, 2013 10:19 AM EST
Billionaire Suleiman Kerimov and his business partners in OAO Uralkali may reach an agreement to sell their joint 33 percent stake as soon as next week, according to four people with knowledge of their discussions.
Billionaire Mikhail Prokhorov ’s Onexim Group is the front-runner to take control of the world’s largest potash maker and may later bring in partners, the people said, asking not to be identified because the talks are private. The stock extended gains to 5 percent in Moscow today after the news, raising the stake’s value to about $5.2 billion.
A sale may defuse a dispute between Russia and Belarus sparked by Uralkali’s July withdrawal from a partnership that marketed 40 percent of global exports. The falling-out and Uralkali’s plan to boost output roiled the $20 billion market for the soil nutrient. Belarus has called for a change in the company’s ownership before a reconciliation is possible.
“The sooner Kerimov sells, the better for Uralkali, as the company needs some certainty for its future,” Elena Sakhnova, an analyst at VTB Capital, said by phone today.
Kerimov and billionaire partners Filaret Galchev and Anatoly Skurov began receiving offers from potential buyers after Belarus arrested Uralkali Chief Executive Officer Vladislav Baumgertner in Minsk on Aug. 26. That was a month after the Russian potash producer abandoned the joint venture with Belarus. The CEO was moved from a KGB prison to a rented apartment in Minsk on Sept. 26, and his arrest was extended for an additional two months on Oct. 28.
Uralkali Owner Said to Seek Sale Accord as Soon as Next Week
By Yuliya Fedorinova and Irina Reznik
November 15, 2013 10:19 AM EST
Billionaire Suleiman Kerimov and his business partners in OAO Uralkali may reach an agreement to sell their joint 33 percent stake as soon as next week, according to four people with knowledge of their discussions.
Billionaire Mikhail Prokhorov ’s Onexim Group is the front-runner to take control of the world’s largest potash maker and may later bring in partners, the people said, asking not to be identified because the talks are private. The stock extended gains to 5 percent in Moscow today after the news, raising the stake’s value to about $5.2 billion.
A sale may defuse a dispute between Russia and Belarus sparked by Uralkali’s July withdrawal from a partnership that marketed 40 percent of global exports. The falling-out and Uralkali’s plan to boost output roiled the $20 billion market for the soil nutrient. Belarus has called for a change in the company’s ownership before a reconciliation is possible.
“The sooner Kerimov sells, the better for Uralkali, as the company needs some certainty for its future,” Elena Sakhnova, an analyst at VTB Capital, said by phone today.
Kerimov and billionaire partners Filaret Galchev and Anatoly Skurov began receiving offers from potential buyers after Belarus arrested Uralkali Chief Executive Officer Vladislav Baumgertner in Minsk on Aug. 26. That was a month after the Russian potash producer abandoned the joint venture with Belarus. The CEO was moved from a KGB prison to a rented apartment in Minsk on Sept. 26, and his arrest was extended for an additional two months on Oct. 28.