EuroChem Group AG, Zug, Switzerland, has been eliminated from the final selection process for Russia’s Tatarstan Republic-based nitrogen fertilizer and methanol producer Ammoni, a spokesperson for the Swiss-headquartered group has confirmed.
Acron Group, Moscow, is also out of the final selection process, according to Bloomberg, citing an Interfax report. A company spokesperson said Acron has not made any official comment on the Ammoni sale process.
Russia’s Roman Trotsenko-owned nitrogen fertilizer and industrial products manufacturer SDS-Azot and Russian oil major Lukoil remain as the two contenders in the final stage of the selection process, according to the report.
The four companies were the remaining final contenders for the Ammoni assets (GM June 7, p. 28).
Lukoil’s interest in acquiring the Ammoni assets earlier were reported to be lukewarm at best (GM April 19, p. 24; April 12, p. 26), and, according to unidentified industry sources cited by Interfax, the Tatarstan authorities continue to look at other ways to sell Ammoni in order to keep control of the assets within the republic.
Based on bids submitted, the Tatarstan nitrogen producer is currently valued at $0.9 billion. However, Ammoni is reported to owe Russian state-owned development bank VEB.RF, which holds a 22.8 percent interest in the company, some RUB100 billion (approximately $1.6 billion). Trotsenko has been cited as saying the debt would be converted into shares when the company is sold, after which there would be a buyback.
In addition to SDS-Azot, Trotsenko’s fertilizer assets include Russia’s Angarask Nitrogen Fertilizer Plant.
Uralchem, PhosAgro, and Indorama, in a combination with the Russian Direct Investment Fund, were among the companies reported to have participated in the early stages of the Ammoni sale tender.
The sale is now targeted to be completed by autumn, according to industry sources cited by the report, and somewhat later than the earlier anticipated May/June timeframe.