Uralkali Says Investors Tendered 11.89% of Shares in Buyback
PAO Uralkali said investors tendered 11.89 percent of shares in its buyback program, less than the amount sought by the world’s largest potash producer.
The tender offer won’t be satisfied on a pro-rata basis, the company said Monday in a statement, meaning all the offered shares will be bought. The result, which falls short of a plan to repurchase as much as 15.97 percent of shares, will see Uralkali buy $1.12 billion of stock rather than $1.5 billion.
The Russian producer announced the buyback in April at $3.20 a share, or $16 per global depositary receipt, held through Cyprus-based unit Enterpro Services. The plan surprised investors since Uralkali intends to spend 300 billion rubles ($6 billion) to help compensate for lost output at a flooded mine.
Billionaire Mikhail Prokhorov’s Onexim Group, one of the company’s two biggest owners, declined to disclose how much stock it tendered. The 27 percent holder will have more than a blocking stake after Uralkali cancels all treasury shares, spokesman Andrey Belyak said. OAO Uralchem, which owns 20 percent, said this month it wouldn’t tender shares.“If the main shareholders sought for Uralkali to repurchase as much of the free float as possible, the buyback didn’t reach the target,” Kirill Chuyko, BCS Financial Group’s chief of equity research, said by phone from Moscow. “The fact that Onexim Group, the largest co-owner, has not tendered a big stake, leaving a chance for minorities to exit, didn’t help.”