New Uralkali owners plan CEO change, Belarus talks
Russian tycoon-turned-politician Mikhail Prokhorov and a fellow businessman have taken control of a 47-percent stake in potash firm Uralkali and plan to appoint a new CEO who could revive a partnership with Belarus, a source close to the matter said.
Uralkali, the world's biggest potash producer, quit a trading alliance with Belarus in July which controlled 40 percent of the $20 billion global market of the crop nutrient in order to focus on maximising sales volumes.
The move triggered a plunge in the price of potash and infuriated Belarus where the sliding price hit export earnings.
"They will try to solve the conflict now," a source, familiar with new shareholders' plans said on Friday.
Shortly after scrapping the deal with Belarus, Uralkali's CEO Vladislav Baumgertner was detained in that country's capital of Minsk and charged with abuse of power and embezzlement.
Baumgertner remains under house arrest after his extradition to Moscow. Uralkali has steadfastly defended Baumgertner and denied any wrongdoing.
A change in shareholding at Uralkali has since seen tycoon Suleiman Kerimov sell out. Belarus' president Alexander Lukashenko had demanded Kerimov's exit as a precondition for a revival of the alliance.
The incoming boss will be deputy chairman of fertiliser firm Uralchem, Dmitry Osipov, another source familiar with the shareholders' plans said. Osipov, 47, was CEO of Uralchem from 2007 until 2011. Uralkali declined comment on the potential change at the helm.
"Baumgertner had to go," said Bruce Bower, a partner at Moscow hedge fund Verno Capital, adding the governments of both Russia and Belarus were unhappy with him as Uralkali had damaged the bilateral relationship between them.
The shareholder change sees Prokhorov's investment vehicle, Onexim Group, complete a previously-announced deal to buy a 21.75 percent stake in Uralkali from Kerimov, Onexim said.
Firms close to Prokhorov are also buying 5.34 percent of Uralkali on the market, two sources familiar with the deal told Reuters. They are acquiring the stake from firms close to Kerimov, one of sources added. Onexim declined to comment.
Meanwhile, Dmitry Mazepin's fertiliser firm Uralchem, completed a previously-agreed deal to buy a further 20-percent stake in Uralkali from Kerimov's partners, Uralchem said.
Prokhorov's and Mazepin's combined stake will rise to 53 percent in 2014, when Uralkali plans to cancel 12 percent of its shares it holds in treasury.
- Scout for aphids in winter wheat
- El Niño development stalled out, but wet winter still predicted
- Ag markets posted divergent closes Wednesday
- Farm bill program to help farmers affected by severe weather
- Israel panel proposes 25-42% tax hike on mining companies
- Ag markets moved almost unanimously higher Wednesday morning
- How much corn can the ethanol industry use?
- Economist: Taxing P could reduce risk of algal blooms
- Commentary: Government wants farmers to quit farming
- What is the relationship between maturity group, yield?
- Commentary: Ambulance-chaser lawyers take on Syngenta
- Berman: Camouflaged activists threaten agriculture