"Two Potassium" Mergers Now

Sinochem New Network News Recently, the Uralkali Company of Russia Uralkali stated that on March 18, the Pom Regional Court decided to lift the partial ban on the merger of Ural Potash and the Silivit Potash Fertilizer. People in the industry believe that the signing of the "two-potassium" merger agreement on February 4 is about to enter the implementation stage.

Before the "two-potassium" proposed merger, Russia's Akon, Licona International, ROF and Medvezhonok Holdings raised objection. Aconn and Licona International have a small portion of shares in Celivine, of which Aconn holds 8%. Ural Potash stated that the Ural shareholders have agreed to the court’s decision and agreed to merge. The court also made a decision to allow the company to cancel the current registered company after the merger of the two parties. The merged company will be re-registered according to relevant laws.

Uralka Potash stated that the only ban that is currently maintained is that the Federal Financial Market Committee of the Russian Federation will stop issuing Ural shares and notify the issuance of shares during mergers and acquisitions, and will issue new shares as required after the completion of the merger. Ural has obtained 1565151 ordinary shares of the company from the securities market on February 28, accounting for 20% of its shares, worth US$1.4 billion. Ural Potash Corp hopes to complete all acquisitions in 2011.

It is understood that Ural has issued 121330 ordinary shares to the public and it will cost US$870,000 if recovered. The common shares issued by Cilivinite will cost US$1.3 million if recovered. Industry analysts believe that although both companies have expressed their determination to merge, from the current point of view, since the joint-stock companies have a lot of loose holders, it is a new issue to handle the recovery of the scattered shares.