Russia tycoon creates new potash giant

first_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldHealthyGem”My 600-lb Life” Star Dropped 420 Pounds, See Her NowHealthyGem A RUSSIAN billionaire moved yesterday to create the world’s second-largest potash miner by uniting Russia’s top two producers, Uralkali and Silvinit, in a $1.4bn (£900m) deal.Uralkali, which like Silvinit is effectively controlled by Russian mining-to-banking tycoon Suleiman Kerimov, offered to buy rival Silvinit for cash and shares.Uralkali’s offer for 20 per cent of Silvinit, or 1.57m ordinary shares is at $894.5 per share, which compares with the $940 price on Moscow’s dollar-denominated RTS exchange. The total cash price would be $1.4bn, both firms said.The merger of the two companies will then be completed through a share swap.Shares in Silvinit fell nine per cent in Moscow on the news, while Uralkali stock added around two per cent.Analysts at Uralsib estimated that the deal valued Silvinit at a 35 per cent discount to Uralkali. They said it was far from a merger of equals.“They [the terms] don’t look very good for Silvinit, it values the business at about 40 per cent discount to Uralkali… That’s in the interest of Uralkali shareholders,” said Bob Kommers, analyst at Deutsche Bank.“They are buying a similar asset at a significant discount, which is very attractive [for Uralkali]. There are some operational synergies, which are in line with our estimates. Those are the main benefits.”Uralkali said the deal had already gained the support of 53 per cent of its ordinary shareholders and from 67 per cent of Silvinit’s. FAST FACTS | URALAKI / SILVINITThe new company will be one of the largest potash makers in the world, second only to  Canada’s PotashThe new company will have a market capitalisation of around $24bn (£15.5bn) Show Comments ▼ Share Monday 20 December 2010 7:27 pm whatsapp Tags: NULLcenter_img whatsapp Russia tycoon creates new potash giant More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.org980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comKiller drone ‘hunted down a human target’ without being told tonypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comWhy people are finding dryer sheets in their mailboxesnypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comConnecticut man dies after crashing Harley into live bearnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comMark Eaton, former NBA All-Star, dead at KCS-content last_img read more