PhosAgro Update on Mandatory Tender for Apatit Shares

OJSC PHOSAGRO - PhosAgro Update on Mandatory Tender for Apatit Shares

PR Newswire

London, January 18

PhosAgro Announces that Owners of More Than 11% of Apatit Shares Have AcceptedMandatory Tender Offer

Moscow - PhosAgro (or "the Company") (Moscow Exchange, LSE: PHOR), a leadingglobal vertically integrated phosphate-based fertilizer producer, announcesthat owners of more than 11% of Apatit shares have accepted PhosAgro'smandatory tender offer. The holders of 744,349 ordinary and 174,367 preferredshares have responded positively.

Following completion of payments to shareholders, PhosAgro and affiliatedparties' ownership of Apatit shares will increase to over 95%, which willenable the Company to consider launching a compulsory buyout offer for theremaining shares in Apatit. The precise size of PhosAgro and affiliatedparties' ownership in Apatit will be disclosed following payment for the sharesto be bought out, and once ownership rights for the said shares have beentransferred to PhosAgro.

The mandatory tender offer was sent by PhosAgro and received by Apatit on 8November 2012. The offered price, which was determined in accordance withRussian law, was RUB 6,679.9 per ordinary share and RUB 5,344.0 per type Apreferred share. The offer period expired on 17 January 2013. VTB Bank provideda bank guarantee securing PhosAgro's potential liabilities.

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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