Czech private equity group PPF has swapped its shares in Nomos Bank for a stake in the world’s largest potassium chloride producer Uralkali in a deal with Otkritie Financial Corporation, Otkritie said on Monday.
“Otkritie Financial Corporation announces it has acquired 18,392,052 Nomos Bank shares (represented by 36,784,104 ADRs) from PPF Group in a share swap deal. In consideration for its interest in Nomos Bank, PPF Group received a stake in Uralkali,” Otkritie said in a statement.
The swap ratio used by the companies was 3.44 Uralkali shares for 1 share in Nomos Bank, or 0.344 Uralkali GDR for 1 Nomos Bank GDR.
The Uralkali stock used in the swap had been purchased from ICT Group.
The deal gives PPF 2.15 percent of Uralkali shares, worth about $460 million at market prices on June 18 when the deal was struck, according to Prime news agency estimates.
Otkritie’s deal to acquire 19.9 percent of Nomos Bank, one of Russia’s top thirty banking institutions, cost the company about 14 billion rubles ($440 million), including 1.27 billion rubles in swap deal expenses.
PPF Group confirmed on Monday the swap of Nomos Bank shares for Uralkali’s stock.
“At the date of the execution of the transaction, this values one Global Depository Receipt (GDR) in Nomos at $13.93 per GDR,” PPF said in a statement.
“Through several transactions PPF sold its 26.5 percent stake in the Russian private bank in order to invest in the further development of its key assets in Russia and to fund expansion in the fast-growing Asian markets,” PPF said.
After the swap news, Nomos Bank’s stock plunged 6.4 percent on the MICEX-RTS Stock Exchange to 725.5 rubles per share and 0.6 percent to $10.98 per GDR on the London Stock Exchange as of 15:35 p.m. Moscow time (11:35 GMT).
Uralkali’s stock rose 0.9 percent on the MICEX-RTS Stock Exchange and traded at 260.5 rubles per share while its GDRs rose 1.6 percent to $41.16 per GDR.