Chengdong Investment Corp converted bonds it had purchased from Russian fertilizer company Uralkali to stock. A unit of China Investment Co (CIC), Chengdong Investment acquired the bonds from Wadge Holdings in November. Uralkali was notified of the conversion today, it said in a statement.
Billionaires Suleiman Kerimov, Filaret Galchev and Anatoly Skurov own Wadge Holdings. They are also the largest shareholders in Uralkali. They continue to retain a 33% stake in the potash company. According to Bloomberg, the billionaires were said to have received offers for their Uralkali stake after its trading venture with Belarus was halted in July.
People familiar with the matter told Bloomberg on September 13 that Vladimir Kogan was the top bidder for control of the world's biggest potash producer. Kogan is an ally of Russian President Vladimir Putin.
Uralkali investors apparently welcomed the development. After Bloomberg News reported the bond-to-stock conversion of Chengdong Investment, Uralkali rose 2% to RUB 173.50 at 10:11 in the morning in Moscow.
Join the Conversation