8th Sep 2009 14:06
September 8, 2009
Acron and ITERA Completed Sibneftegaz Share Sale Transaction
Itera-Vostok, member of ITERA International Group of Companies, acquired from Acron 100% interest in Firma Proekt, holding 21% interest in Sibneftegaz.
Acron's Board of Directors Chair Alexander Popov said: "This transaction is a result of longstanding negotiations between Acron and Itera International Group. Currently interest in Sibneftegaz is not strategic for Acron, for this reason we decided to withdraw the capital for this company and to focus on our core business. The released capital will be directed to investment projects and servicing current Acron's debt."
Chairman of Itera Oil and Gas Company Management Board Vladimir Mekeev noted that Sibneftegaz is one of Itera's key strategic assets. Acquisition of Acron's share absolutely goes in line with Itera's plans and policy to increase its raw material base. Consolidation of the share up to 49% will help the company together with its partner Gazprombank, holder of 51% interest, to provide the company's efficient growth and proceed with hydrocarbon reserves development.
Additional information:
Sibneftegaz owns subsoil licenses for Beregovoye, Pyreinoye, Khadyryakhinskoye and Zapadno-Zapolyarnoye gas fields located in the Purovsky area of the Yamalo-Nenets Autonomous Okrug. The company's total reserves exceed 400 billion cubic meters of gas.
For Further Information:
Acron
Elena Kochubey - Tel: +7 (495) 777 08 65
Head of Public Relations
Ilya Popov - Tel: + 7 (495) 411 55 94
Head of Investor Relations
Notes to editors
Acron is a leading Russian and global mineral fertiliser producer with a diversified product portfolio consisting of multi-nutrient fertilisers such as NPK and bulk blends, and straight nitrogen-based products such as urea, ammonium nitrate and UAN. In 2008, the Group's output of ammonia and mineral fertilisers (exclusive of own use) totaled 3.6 million tonnes. The Group's key markets are Russia, China and other Asian countries, Europe, Latin America, and FSU countries.
Acron employs over 13,000 people In 2008 the Group's consolidated revenues under IFRS were RUB 43,132 million (US$ 1,734 million), and net income was RUB 9,891 million (US$ 398 million). Acron's ordinary shares are listed and traded on the MICEX, RTS and LSE stock exchanges under the symbol "AKRN".
Acron has three production facilities - Acron (Veliky Novgorod, Russia), Dorogobuzh (Smolensk Region, Russia) and Hongri Acron (Shandong Province, China). Acron's logistics and transportation capabilities include its own fleet of railway cars and three sea port trans-shipment facilities on the Baltic Sea - at the Kaliningrad port of Russia, at the Estonian Sillamäe port and at the Estonian Tallinn port. The Group operates distribution networks in Russia and China.
Acron plans to enhance its vertical integration and secure supplies of phosphate and potash inputs through the development of its own mineral resource base. The Group owns licences to develop two apatite-nepheline ore deposits in the Murmansk region and a potassium-magnesium salts deposit in the Perm region (both located in Russia).
Related Shares:
AKRN.L