Uralkali, one of Russia's leading fertilizer producers, will merge with Silvinit, the country's top potash fertilizer producer, creating one of the world's largest fertilizer producers in a deal involving $1.4 billion in cash and a share swap, Uralkali said on Monday.
The merger is structured in two stages, Uralkali said in a statement.
Under the first stage, Uralkali will buy 20% of Silvinit for $1.4 billion and under the second stage, it will issue shares to swap them for Silvinit's ordinary and preferred stock. Silvinit's shareholders will get 133.4 Uralkali ordinary shares per each Silvinit ordinary share and 51.8 Uralkali ordinary shares per each Silvinit preferred share.
Uralkali also said it would issue debut three-year bonds worth 50 billion rubles ($1.621 billion) at the MICEX via a public subscription.
Silvinit will cease to exist as a result of the deal, while Uralkali's net profit per share will rise within a year after the merger.
Uralkali ordinary shares will be traded on the RTS and MICEX after the deal, while global depositary receipts, each covering five ordinary shares, will be traded on the London Stock Exchange.
Market capitalization of the two companies combined amounted to $23.9 billion as of December 17.
Uralkali said in a statement that shareholders would discuss the merger at a meeting on February 4.
MOSCOW, December 20 (RIA Novosti)
