Russia's Uralkali to consider new buyback programme

MOSCOW Mon Nov 12, 2012 1:55pm GMT

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MOSCOW Nov 12 (Reuters) - The board of directors of Russia's Uralkali, the world's largest potash miner by output, will consider a new share buyback programme on Tuesday, the company said on Monday.

Uralkali launched a previous programme to buy back up to $2.5 billion worth of stock in Oct. 2011, spending $863 million. This summer Uralkali agreed to cancel 5 percent of its stock held in treasury after that buyback programme.

Uralkali shares rose 1.7 percent to 234.50 roubles per share in Moscow by 1322 GMT, outpacing a 0.39 percent increase in the benchmark MICEX index.

Last week Uralkali's shares fell after its main owners issued exchangeable bonds to Chinese sovereign wealth fund CIC and VTB Capital.

The bonds can be converted into a 14.5 percent stake in Uralkali now worth more than $3 billion, potentially extending the resource reach of China, a major consumer of the mineral fertilizer.

Uralkali declined further comment on the proposed buyback.

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