OAO Phosagro (PHOR)’s controlling owners, Andrey Guryev’s family, is set to raise $467 million selling a 9 percent stake in the fertilizer producer to boost the number of shares traded and gain entry to the MSCI Russia index.
A group of companies, which are controlled by the Guryevs, is selling 11.1 million shares, in the form of shares at $42 apiece and global depositary receipts at $14 apiece, Phosagro said today in a regulatory filing.
The price represents a 5.2 percent discount to the April 8 close of $14.77 a GDR, the day before the offer was announced. Phosagro closed at $14.15 in London yesterday.
The sale will boost Phosagro’s free float, or the volume of shares available to the public, from the current 10.7 percent. That growth allows the company to expand its investor base and increase its chances of joining MSCI indexes.
The Guryevs will reinvest about 45 percent of the proceeds to buy about 5 million new Phosagro shares, the Moscow-based fertilizer producer said April 8. The company said it may sell as many as 13.5 million new shares in an open subscription.
Phosagro will use most of the proceeds from its capital increase to buy out minority holders in its Apatit and Phosagro- Cherepovets units, the company said April 8.
Bank of America Corp.’s Merrill Lynch unit, Citigroup Inc., Credit Suisse Group AG, Raiffeisen Bank International AG (RBI), Renaissance Capital Holdings Ltd., Sberbank CIB and VTB Capital were appointed to manage the Guryevs’ sale.
Adorabella Ltd., Chlodwig Enterprises Ltd. and Miles Ahead Management Ltd., representing the interests of the family, sold the shares.
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