Russia’s Uralkali to consider additional issue of shares

MOSCOW, Mar 17 (PRIME) -- Recently, Russia’s Uralkali’s General Meeting of shareholders has not supported the Company’s Board of Directors on the question of the cancellation of the reorganization of the Company, which was previously approved on 31 July 2014.

Thereat it was decided to reorganize Uralkali by way of merging its subsidiary, JSC Uralkali-Technology, into it and to decrease the Company’s share capital by way of cancellation of the Company’s shares held by JSC Uralkali-Technology

A source also notes that due to the merger of Uralkali-Technology with Uralkali, net assets of the Company will become negative, which is unacceptable for shareholders. According to the source, there are two ways to solve this problem: to accumulate retained earnings in amount of U.S. $3 billion, which will take about five years, or to hold an additional issue of shares.

“The option with the additional issue of shares looks preferable in current realities,” the source added.

Uralkali declined to comment.

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