Mgmt Brd Approves Apatit Shareholders Compulsory Buyout

OJSC PHOSAGRO - Mgmt Brd Approves Apatit Shareholders Compulsory Buyout

PR Newswire

London, February 19

PhosAgro Management Board Decides to Launch Compulsory Buyout of ApatitShareholders

Moscow - PhosAgro (or "the Company") (Moscow Exchange, LSE: PHOR), a leadingglobal vertically integrated phosphate-based fertilizer producer, announcesthat the Company's management board at its first meeting on 18 February 2013decided to launch a compulsory buyout of all remaining shares owned by minorityshareholders of OJSC Apatit.

PhosAgro CEO and Management Board Chairman Maxim Volkov said: "This decision isfully in line with our strategy of consolidating our ownership of the minoritystakes in PhosAgro's subsidiaries."

PhosAgro's management board decided to launch the compulsory buyout offer afterthe stake in OJSC Apatit's authorised capital owned by PhosAgro and itsaffiliated parties surpassed 95% as a result of the mandatory buyout offer madeto Apatit shareholders. Today the Company's stake in Apatit equals 95.95%.PhosAgro has spent a total of RUB 5,904 million on the mandatory buyout.

PhosAgro's mandatory buyout offer was launched as a result of the Company'svictory in the tender for the Russian Federation's 20% stake (26.67% ofordinary shares) in Apatit. This resulted in PhosAgro's ownership of Apatitexceeding 75%, as it increased to 77.57%. PhosAgro's winning bid of RUB 11,110million was the highest price offered by tender participants.

PhosAgro plans to finish the consolidation of its ownership in Apatit beforethe end of this year.

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OJSC PhosAgro

PhosAgro is a leading global vertically integrated phosphate-based fertiliserproducer. The Group focuses on the production of phosphate-based fertilisers,feed phosphate and high-grade phosphate rock (with P2O5 content of not lessthan 39 percent), as well as ammonia and nitrogen-based fertilisers.

The Group is the largest phosphate-based fertiliser producer in Europe, thelargest producer of high-grade phosphate rock worldwide and the second largestMAP/DAP producer in the world (excluding China), according to Fertecon.PhosAgro is also a leading producer of MCP feed phosphates in Europe, and theonly producer in Russia.

PhosAgro has 2.1 billion tonnes of resources (according to JORC) of highquality apatite-nepheline ore, representing over 75 years of production. TheGroup also controls substantial Al2O3 resources and has 41% of Russia's rareearth oxides resources according to the G.P. Luzin Institute of EconomicProblems of the Kolskiy Scientific Centre of the Russian Academy of Sciences,2010).

The Group's mines and phosphate rock production facilities are located in themountainous areas of the Kola Peninsula in the Murmansk region of northwestRussia, whereas its fertiliser and feed phosphate production assets are locatednear the city of Cherepovets in the Vologda region and near the city ofBalakovo in the Saratov region of southwest part of European Russia. PhosAgro's2011 IFRS revenue was over USD 3.4 bln and EBITDA was USD 1.2 bln. The Сompany's net debt/EBITDA ratio was 0.43 at 31 December 2011.

For further information on PhosAgro please visit: www.PhosAgro.com