UralChem purchases 19.999% stake in potash miner Uralkali for US$3.8B
February 17, 2014
(Interfax Russia & CIS Business and Financial Newswire)
– UralChem raised a seven-year loan facility of up to $4.5 billion from VTB Capital, which is part of the VTB group (MOEX: VTBR), to fund the transaction. The borrowers were UralChem Holding P.L.C. and its subsidiary OJSC Mineral Fertilizer Plant of Kirovo-Chepetsk Chemical works (MFP KCCW).
According to the report, the average interest rate on the loan is 4.65%.
As security for the loan, UralChem gave the bank acquired shares and GDR of Uralkali.
In December 2013, UralChem closed the deal to purchase 19.9% of Uralkali, including 7% from Galchev's companies and 4.8% from Skurov's. The company has not said from whom the remaining part of the stake was purchased.
A spokesman for Mikhail Prokhorov's Onexim Group told Interfax earlier that the company had closed a deal to buy 21.75% of Uralkali from companies controlled by the Suleyman Kerimov Foundation. A source familiar with the terms of the deal has said that, in addition to this stake, companies close to Prokhorov bought another 5.34% of shares in Uralkali, which would give Prokhorov control of 27.1% of shares in the potash producer.