OREANDA-NEWS. The sale of the state-owned stake in OAO Grodno Azot (25% plus one share) will be discussed in the framework of direct negotiations with the investor, Belarus' First Vice Premier Vladimir Semashko told reporters.

The first auction to sell the asset was cancelled due to the absence of bids, Semashko reminded. In his words, the talk will continue next week in the framework of direct negotiations with one of the owners of one respectable Russian company.

None of the four potential bidders would turn up for the tender scheduled for July 29, 2014. Semashko believes the investors had been playing a collective game aimed at reducing the price of the asset.

Whether or not the deal with the investor is made, OAO Grodno Azot will still implement two large-scale projects: USD 480 million to expand production facilities by 20% and USD 1.4 billion to build a new factory, Semashko informed.

Speaking of other integration projects with Russia, Semashko accentuated the point that the experts had not yet come to terms on the market value of Peleng, MZKT and Integral.

As previously reported, the Jul 29 auction to sell the state-owned stake in OAO Grodno Azot was cancelled due to the absence of bids, Russia's Eurochem, Uralkhim, Gazprom considered as core investors.

Back then Gazprom declined to comment. EuroChem representative Vladimir Torin said that the company disliked terms of the sale but it is still interested in the asset.

The Belarusian government wants to sell a 25% plus one share stake in Grodno Azot for at least U.S. USD 414 million. The winner must inject USD 440 million into the capital of the plant by buying the company's additional shares after which the investor would have a no more than 50% plus one share stake.

Under the tender conditions, an investor would also undertake to build a USD 1.2 billion facility for the company.