By Lukas I. Alpert
MOSCOW--Russian potash producer Uralkali (URKA.RS) said Thursday
it has bought minority shareholder Zelimkhan Mutsoev's 6.4% stake
in the company for 41 billion rubles ($1.3 billion).
The sale price of RUB217.3 a share marked a 6.2% discount to the
stock's closing price on Tuesday on the Moscow Exchange, the
company said.
Uralkali said it intended to now cancel the 188.7 million of
ordinary shares Mr. Mutsoev held, which would bring the firm's free
float above 50%.
"The acquisition of shares from Mr. Mutsoev represents a
compelling opportunity to acquire shares at a discount to the
prevailing market price," said Chief Executive Vladislav
Baumgertner.
Uralkali shares traded down 0.4% at RUB230.5 on opening in
Moscow Thursday.
Mr. Mutsoev, a real estate baron, chose to sell his stake "as he
wants to focus on public service," said Urakali's board chairman
Alexander Voloshin.
Mr. Mutsoev is a member of the State Duma, Russia's lower house
of parliament, representing the Sverdlovsk region for the ruling
United Russia party.
In February, Mr. Mutsoev purchased an 18.5% stake in Russia's
largest gold miner Polyus Gold International Ltd. (PGIL.LN) from
billionaire Mikhail Prokhorov for $1.77 billion.
Write to Lukas I. Alpert at lukas.alpert@dowjones.com