The main shareholder of FosAgro to lose control of the company

The family of General Director of FosAgro Andrey Guriev, which owns 50.28% of the company, will reduce its share by offering 5% on stock exchanges in London and Moscow. The shares will be bought by a consortium of international investors led by the Russian Direct Investment Fund, including six of sovereign wealth funds from Asia and the Middle East.
Origin source
Family of General Director of FosAgro Andrey Guriev plans to sell 5% of its shares during the SPO at Moscow and London stock exchanges, and then redeem 3% from the other shareholder of the company, according to FosAgro message.

Now Guriev and his family owns 50,28% of FosAgro, and thus, he will be deprived of the share control of the company after the offering.

The success of the transaction will be provided by the Russian Direct Investment Fund (RDIF), which led a consortium of international investors. Together with them, it will participate in the placement of FosAgro. Among the investors are six leading sovereign wealth funds from Asia and the Middle East.

"The SPO securities of FosAgro was a good opportunity for us and our international partners to invest in one of the world's leading producers of fertilizers," RDIF CEO Kirill Dmitriev said.

Accommodation is organized by BofA Merrill Lynch, Citi, Sberbank CIB and VTB Capital.

On February 7, Guriev said to journalists that considered it operational control as a priority. "Potentially it is possible," said he, answering the question of journalists, whether he was ready to reduce the share of the company in order to increase free cash flow. He also noted that he saw no risk in reducing the share, because even in this case he would retain operational control.

Selling shareholder of FosAgro in the SPO appears to be Adorabella Limited, which owns 22.95% of the company, it will offer investors up to 6,480,000 shares, representing up to 5% of the share capital of FosAgro. The company's shares will be sold with the accelerated formation of the order book.

Part of the proceeds from the sale of shares Guriev will use to buy up to 3.89 million shares of stock, or up to 3% of the share capital from another shareholder of FosAgro , Igor Antoshin (owns 12.66% of the company), at the price, which will be deretimned during the collection of applications.

FosAgro in the IPO on the London Stock Exchange in 2011 placed 10.8% of the share capital at $14 per GDR; two years later, the family Guriev family's entities sold another 9% of the shares.

In addition to the Guriev's family and board member of FosAgro Antoshin, a major shareholder of the company with a stake of 14.52% of the shares is the Rector of the Gorny National University (St. Petersburg), Vladimir Litvinenko.