“Uralkali” found $1.7 billion to repurchase its shares from ONEXIM

“Uralkali” is preparing for the transaction to purchase its own shares from ONEXIM group of Mikhail Prokhorov. To this end, the company raised $1.7 billion from Sberbank told RBC a source familiar with the terms and conditions of this transaction. That deal is ready to Finance the savings Bank, on Saturday, citing sources in banking circles have also reported “Interfax”.

Credit issued under a line of credit for $3.9 billion, which the Board of Directors approved in January. Under it, the company laid the package quasicanonical shares at 20.1%. Then, Uralkali has announced that it plans to use the money for refinancing of debt and General corporate purposes. A source familiar with the shareholders of Uralkali in may, RBC said that this line can be used for the purchase of ONEXIM package in “Uralkali”, and also on the repayment of actions at minority shareholders.

Now “Oneksima” belongs to 20% of the company, URALCHEM Dmitry Mazepin – 19,99%, and the rest – quasicanonical package on balance “daughters” company “Uralkali” technology. In December 2015, Uralkali approved the holding of delisting its shares from the London stock exchange, but a small package of shares of “Uralkali” still trades on the Moscow exchange.

Representatives of Sberbank and URALCHEM declined to comment, a representative of ONEKSIM – not provided comment at the time of publication. Representative of Uralkali said that the rumors did not comment. The company launched a buyback of up to 4% of the shares. Other actions require a new corporate approvals. Until there are none,” said he.

That ONEXIM may sell the shares of “Uralkali” in early June, reported Bloomberg citing its own sources. The final decision on this issue ONEXIM, however, did not take, say two interlocutors RBC, close to the shareholders of Uralkali. The structure of a possible transaction sources do not comment, but say that it won’t be a direct sale of shares Mazepin.

Package Oneksima in Uralkali are set for the REPO: previously, the lender was VTB, but this year, ONEXIM refinanced this loan in the savings Bank, told RBC a source close to one of the parties to the transaction. “The company can repay the debt and to take action, says one of the interlocutors RBC. Dmitry Mazepin, therefore, will be the main owner of the company. Mazepin has no plans to offer Oneksima premium to the current price of shares traded on the stock exchange, says the interlocutor of RBC. Market capitalization traded on the Moscow stock exchange – 558 bn, or $8.5 billion (at the exchange rate on Friday, June 18). Thus, the package ONEXIM is now worth $1.7 billion.

URALCHEM and ONEXIM became the owners of “Uralkali” in 2013, buying 48.75% of the company’s shares from Suleiman Kerimov. URALCHEM took to purchase its share of about $4 billion. How much to pay then ONEXIM unknown. Bloomberg in early June, wrote that the group would like to recover their investment in Uralkali $4 billion According to calculations by Vedomosti, from the date of purchase ONEXIM could get from Uralkali 1.04 billion rubles of dividends. In addition, in the framework of a share buyback, the holding company Mikhail Prokhorov has sold about 7% of Uralkali for about $700 million.

Mazepin plans to make the company” a private company to transfer credits taken for purchase of its shares, at an operational level, and to serve them from the cash flow of the company, but not at the expense of its dividend, as it is now, says one of the interlocutors RBC. Depending on the price of fertilizers, Uralkali will be able to pay off the loans for 3-7 years, after which the company will become “a generator of cache,” he says. But the debt load of the “BRIC” already at the end of 2015, it was 2.8 EBITDA (net debt – $5.4 billion).

In preparing the material participated Timofey Dzyadko