| Date: |
05-10-2011 |
| Subject: |
India Gets 1st Right To Buy Stake In Potash-Maker Belaruskali |
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India will have the first right to buy stake in 100% Belarus government-owned Belaruskali, one of the world's biggest producers and suppliers of potash.
To ensure assured supply of potash, Indian government had recently sent a team to initiate talks with the Belarus government for stake purchase in Belaruskali.
India is entirely dependent on imports meet its potash demand of six million tonne per annum. The Centre aims to pick up some stake in Belaruskali as and when the Belarus government decides to offload its holding in the company.
"Belarus has given the 'right of first refusal' (ROFR) to India if it plans to dilute its stake in the Belaruskali," a senior Fertiliser Ministry official told PTI.
ROFR is the right of a person or company to purchase something before the offer is made to others.
Belaruskali is mulling to sell a stake in the company to plug its current account deficit.
According to sources, either Indian government itself could acquire the stake or make a joint bid with a consortium of private fertiliser companies.
They also mentioned that even if the Belarus government decides to sell the stake, it may not exceed 20%. The Belarus government has not yet done the valuation of the company.
India has started exploring options to buy fertiliser assets abroad in the wake of instability in global prices and shortage of fertilisers on the domestic front.
The decision in this regard was taken recently in a meeting called by Prime Minister Manmohan Singh with his Cabinet colleagues, including Finance Minister Pranab Mukherjee and Agriculture Minister Sharad Pawar.
The Prime Minister had directed that the Fertiliser Ministry, helped by the Ministry of External Affairs, should look out for opportunities abroad on a priority basis, sources had said.
The suggestion to buy assets abroad was earlier given to the Prime Minister by Pawar, who had expressed concern over fertiliser shortages.
Apart from acquiring stake, Indian fertiliser companies are in talks with Belaruskali to enter into long-term import contract of potash.
Source : smartinvestor.in
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