PhosAgro’s Guryev Family Offers $300 Million Stake to Investors

Bloomberg, 08.02.2017

(Bloomberg) -- Billionaire Andrey Guryev’s family is offering stock in PhosAgro PJSC for the first time since 2013 to raise funds to buy a stake in the Russian fertilizer producer from a minority owner.

The family is offering 6.475 million shares through an accelerated book-building, PhosAgro said in a statement. Some of the proceeds from the 5 percent stake, worth about $300 million based on London trading prices, will be used to purchase a 3 percent interest from fellow shareholder Igor Antoshin.

Citibank, Bank of America Merrill Lynch, Sberbank CIB and VTB Capital are managing the offer.

PhosAgro has benefited from low production costs even as global demand has foundered, weakening prices. Its shares have risen almost 38 percent in dollar terms in the past 12 months, while remaining little changed in rubles.

The Russian Direct Investment Fund plans to bid for shares with six sovereign wealth funds from Asia and the Middle East and other investors, the Kremlin-backed fund said in a separate statement. The group has bid for $200 million of shares, Interfax reported, citing an unidentified person with knowledge of the plan. RDIF usually invests 1 ruble for every nine spent by its partners, according to its website.

PhosAgro last offered shares in April 2013, when Guryev’s family raised $467 million.