MOSCOW: The Onexim investment vehicle of Russian billionaire Mikhail Prokhorov yesterday announced it was buying a 21.75 percent stake in potash giant Uralkali from his fellow tycoon Suleiman Kerimov.
Financial details were not disclosed but the business daily Vedomosti reported yesterday that the transaction would value Uralkali at $20bn, meaning Kerimov would receive $4.35bn for his shares. Onexim confirmed the purchase in a statement, saying the parties expected the transaction to close shortly.
“We are certain that the potash industry has strong fundamentals and that Uralkali, as the world’s leading producer and the key player in the industry, has considerable potential for growth in value,” said Onexim chief executive Dmitry Razumov.
Prokhorov, owner of the New Jersey Nets basketball franchise who challenged President Vladimir Putin in Russia’s 2012 presidential elections, has a fortune of $13bn and is the 10th richest person in Russia, according to Forbes magazine. Kerimov, meanwhile, has a $7.1bn fortune and is Russia’s 20th richest man, according to the magazine.
However this year has proved tough for Kerimov who astonished observers by selling off all the major stars from his once hyper ambitious Russian Premier League Anzhi Makhachkala football side at the start of this season. This saw one of the biggest mass sell-offs of quality footballers in recent times, with the team’s former captain, the Cameroonian star Samuel Eto’o, joining Chelsea.
Belarus has, meanwhile, charged Kerimov with suspected abuse of authority in the same probe which has seen the chief executive of Uralkali, Vladislav Baumgertner, placed under house arrest in the Belarussian capital Minsk. AFP
