PhosAgro sent a letter to the government proposing a merger with potash producer Silvinit, chief executive Maxim Volkov said Tuesday.
“There was a letter telling of a dialogue around the merger of PhosAgro and Silvinit,” Volkov said. He declined to give further details or comment on the government’s reaction.
PhosAgro has offered the government and Sberbank a stake in the combined company as shareholders of Silvinit and PhosAgro discuss a merger, Interfax reported, citing a copy of the letter signed by PhosAgro chairman Vladimir Litvinenko. The state already owns 20 percent of Apatit, a unit of PhosAgro.
Reports of potential potash-industry mergers have increased since billionaire Suleiman Kerimov and partners bought Uralkali in June. Uralkali may now seek a tie-up with larger rival Silvinit, Vedomosti reported Aug. 2, while state-run Russian Technologies is also interested in creating a fertilizer holding company, Interfax said Tuesday.
Should closely held PhosAgro agree on a merger with listed Silvinit or Uralkali, it would be “an elegant way to float the asset” since the phosphate producer said this year that it will seek to become a public company, Troika Dialog analyst Mikhail Stiskin said by e-mail.
Troika values PhosAgro at an estimated $6 billion to $7 billion. Silvinit fell 3.9 percent to 18,693.42 rubles at the close of trading Tuesday, valuing the company at 146.3 billion rubles ($4.9 billion).
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
