OAO Phosagro’s controlling owner, the family of Andrey Guryev, will raise $467 million selling 9 percent of the fertilizer producer to increase the number of shares traded and help it gain entry to the MSCI Russia index.
A group of companies held by the family is offering shares at $42 each and global depositary receipts at $14, Phosagro said today in a statement. The GDR price is a 5.2 percent discount to the April 8 close, the day before the plans were announced.
The deal brings the free-float, or shares available to trade on the stock market, near the levels required for the company to be included in MSCI indexes, Artem Egorenkov, a Uralsib Capital analyst, said today by phone. The increase, from 10.7 percent now, will allow Phosagro to attract new investors.
Phosagro plans to expand its shareholder base as demand for the company’s GDRs helped push them to a record high of $14.77 on April 8. The fertilizer maker’s 2011 initial public offering raised $565 million through the sale of a 10.7 percent stake.
After the transaction, the company may sell as many as 13.5 million new shares, with the Guryevs reinvesting about 45 percent of their proceeds to buy about 5 million of the equities, the Moscow-based fertilizer producer said April 8. The company will use most of the proceeds to buy out minority holders in its Apatit and Phosagro-Cherepovets units.
Phosagro may only sell 1.5 percent more than the 5 million shares, enough to allow it to join MSCI indexes, Egorenkov said.
Bank of America Corp.’s Merrill Lynch unit, Citigroup Inc., Credit Suisse Group AG, Raiffeisen Bank International AG, 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.
Phosagro dropped 2.8 percent to 1,280.10 rubles by 12:27 p.m. in Moscow, valuing it at 159 billion rubles ($5 billion).