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Buy-back helps the owner of EuroChem Andrey Melnichenko to save on taxes

Elena Rovinskaya estimated actions of the owner of “EuroChem” Andrey Melnichenko which by means of return repayment of actions saves on taxes are how lawful. In 2011 “EuroChem” already carried out large-scale buy-back and redeemed from the parent company of 9,04 % of the actions for total amount of 29,67 billion roubles.

In 2011 “EuroChem” already carried out large-scale buy-back and redeemed from the parent company of 9,04 % of the actions for total amount of 29,67 billion roubles. From them Andrey Melnichenko should receive about 27,4 billion roubles, Dmitry Strezhnev — 2,3 billion roubles.

Thus dividends “EuroChem” last time paid to the shareholders in the spring of last year (following the results of a half-year and nine months 2010 5,8 billion roubles were added in total). Why the company prefers buy-back to dividends — to a traditional way of distribution of profit, in “EuroChem” didn’t begin to explain. According to experts, thus co-owners can optimize the tax assignments.

EuroChem Group is registered in Cyprus, and the income of sale of shares (than in fact and buy-back is) by the Cyprian legislation isn’t taxed, Elena Rovinskaya from юрфирмы «Yukov and partners» explains. And according to dividends “EuroChem” as the tax agent of the owners would pay a tax in the Russian budget. «The interest rate in that case is determined by the income of dividends by the agreement on avoidance of the double taxation, but makes not less than 5 % from volume of dividends» — the lawyer reminds. Thus, if the same sum which “EuroChem” spent for buy-back, it directed on payment of dividends, in the budget not less than 252 million roubles this year and 1,48 billion roubles — in the past would arrive.

For buy-back “EuroChem” it is estimated about 400 billion roubles (12,6 — 12,7 billion dollars), were counted up by the analyst of Raiffeisenbank Konstantin Yuminov, that is on the animator of EV/EBITDA — about 9,2. It assumes an essential award in relation to analogs (“PhosAgro” EV/EBITDA, for example, makes 5,5, Mosaic — 7,3) and is close to an assessment of the highly profitable potash companies, the expert (“Uralkali” EV/EBITDA now even below — 8,5, PotashCorp — 10,6) notes.

«It is not excluded that the means received from “EuroChem” within buy-back, Andrey Melnichenko will direct on repayment of a share of the partner in Siberian Coal Energy Company (SUEK)» — Konstantin Yuminov makes comments. At present Sergey Popov remains the beneficiary less than 15 % of actions of SUEK.

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