Moscow. November 25. Uralkali will soon leave the London stock exchange (LSE) and will be private, said co-owner and member of the Board of Directors of the potash company Dmitry Mazepin at a conference organized by Sberbank CIB.
“Due to the fact that Uralkali will soon leave the London stock exchange and become private, the possibilities of cooperation for the next five years are endless,” said he, answering the question about prospects of cooperation with Sberbank.
The press service of Uralkali said that Mazepin was referring to the decision of the Board of Directors on the delisting from the London stock exchange. “Listing on the “Moscow exchange” is retained, but with the buyback programme in the event of a reduction of the company’s shares in free float below 10% of the company’s shares may be reduced from the first level to the third listing,” said the company.
The company had previously announced that in the future may decide about delisting from Moscow exchange in the case of lowering the level of listing.
The Board of Directors on Monday decided on delisting of GDRs from London stock exchange (LSE). It is expected that the delisting decision will take effect on December 22. In order to give holders of shares and GDRs to sell their securities, Uralkali announced a new repurchase program of up to 6.5% of the share capital. If it will be implemented in full, the free float of Uralkali will be reduced to of 7.36%.
During the conference, Mazepin also said that “URALCHEM” became “Uralkali” in the long term, reach an acceptable level of ROI. “We made this investment for 5-7 years, to the extent the return on the investments which will be acceptable to the company,” he said.