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Sberbank estimates Belaruskali’s value at no more than $15 billion, Russian paper says

 

Sberbank estimates the worth of Belarusian potash giant Belaruskali at $12 billion to $15 billion, not $30 billion as Alyaksandr Lukashenka claimed earlier this week, the Izvestia newspaper said on Saturday with reference to a source close to the Russian bank.

The bank did appraise the Salihorsk-based company earlier this year but did so for the purpose of estimating its collateral rather than sale value, the Russian paper said.

Referring to its estimate, Sberbank said that it could issue a loan of $2 billion to Belarus if it was secured on Belaruskali’s export contracts and 35-percent stake. That means that the Belarusian company’s sale value is no higher than $15 billion, the source said.

Other experts agreed with the conclusion. Raiffeisenbank analyst Konstantin Yuminov said in an interview with Izvestia that Belaruskali is not worth more than $15 billion to $17 billion. Its value is cut by Belarus’ economic risks, the company’s non-transparent management and failure to comply with the International Financial Reporting Standards, he said.

While meeting with British millionaire Jean-Raymond Boulle, the owner of Luxembourg-based Boulle Mining Group, in Minsk on September 23, Mr. Lukashenka said that Sberbank agreed with the Belarusian government’s estimate that Belaruskali is worth $30 billion.

Representatives of Sberbank were not immediately available for comment. // BelaPAN