ZAO Sibur Holding, eastern Europe’s biggest petrochemicals producer, is considering whether to buy stock in OAO PhosAgro, a Russian fertilizer maker that plans to sell shares in an initial public offering next month.
The board will discuss a stock purchase at a June 28 meeting, Sibur said today in a regulatory filing.
PhosAgro, Russia’s largest producer of phosphate fertilizers, expects the IPO of 10 percent to 15 percent of its stock to raise $500 million to $1 billion, Chief Executive Officer Maxim Volkov said on June 17. Pricing will take place on July 15, according to a termsheet obtained by Bloomberg News.
Sibur Holding may become the cornerstone investor in PhosAgro’s IPO, Elena Sakhnova, a VTB Capital analyst, said by phone today. Sibur said it may buy shares or global depositary receipts in PhosAgro.
At least five Russian companies have pulled planned IPOs this year, while Yandex NV, owner of Russia’s most popular Internet search engine, raised $1.3 billion, the most in the country this year.
Sibur is looking at investments in fertilizer producers to boost the value of its own unit, which may later be spun off or sold, Rashid Nureev, a spokesman for the Moscow-based company, said today by e-mail. The Sibur-Minudobreniya unit accounts for 6 percent of Russia’s nitrogen fertilizers, according to a company presentation.
“Given the potential for PhosAgro’s share value to rise, such a financial investment in our portfolio will increase the number of potential variants for the best exit from Sibur-Minudobreniya,” Nureev said.
Timur Belov, a Phosagro spokesman, declined to comment when called by Bloomberg.