Phosagro's main shareholder raises $252 mln from share offer

Reuters, 09.02.2017

MOSCOW, Feb 9 (Reuters) - The controlling shareholder in Russian fertiliser producer Phosagro has sold a 4.5 percent stake in the company, raising 14.9 billion roubles ($252 million) in the Moscow share market's third offering so far this year.

Investors, both international and domestic, are making a cautious return to the Russian market, encouraged by early signs of economic recovery and higher oil prices. Reuters reported the forthcoming Phosagro offer earlier this week.

Russian toy seller Detsky Mir and steel pipes producer TMK have raised cash via share sales this year. Phosagro is set to benefit as the global fertilisers market is due to rebalance thanks to reduced supply from China.

Shares in Phosagro, one of the world's largest producers of phosphate rock, hit their highest level of more than 3,000 roubles last month, the first time since August 2015, as the company has benefited from the weak rouble giving it lower costs and higher export revenues.

Phosagro said on Wednesday that the offering of existing shares, made via an accelerated book building, was priced at 2,550 roubles per share, a 6 percent discount to Tuesday's closing price and in the middle of the earlier prospective range.

Andrey Guryev, deputy chairman of the board of directors, and members of his family have sold a 4.5 percent stake in the company, aiming to use some of the proceeds to buy a 2.7 percent stake from their partner Igor Antoshin.

The Guryev family will retain a total of 43.66 percent stake in Phosagro after both transactions, the company said.

The Russian Direct Investment Fund (RDIF) said it had formed a consortium comprising leading investors to participate in the offer.

"The RDIF-led consortium will include six leading sovereign wealth funds from Asia and the Middle East, as well as other investors," RDIF said.

A banking source and two sources close to the deal told Reuters the RDIF-led consortium had bought Phosagro shares worth around $100 million. RDIF declined to comment.

A source familiar with the offering said earlier RDIF was eyeing up to $200 million worth of Phosagro shares. A number of other companies, including En+ and Rusal, are considering equity offerings this year.