Update on the Fertilisers business divestment process
Further to Incitec Pivot Limited’s (ASX:IPL) announcement on 15 February 2024, IPL confirms that it is in advanced negotiations with PT Pupuk Kalimantan Timur (PKT) for the potential sale of its fertilisers business, Incitec Pivot Fertilisers (IPF), for cash consideration.
PKT is an Indonesian state-owned enterprise and is one of the largest urea, ammonia and NPK fertiliser producers in Asia, with five ammonia plants and five urea plants producing more than 3.4 million tonnes of fertilisers annually and supplying fertilisers to Australia.
The potential sale of IPF is subject to agreeing and executing final binding transaction documents. Any sale of IPF to PKT (if agreed) would be subject to a number of conditions precedent, including Foreign Investment Review Board approval.
PKT has confirmed that subject to the sale transaction completing, PKT’s intention would be to continue to supply fertilisers to the Australian market, support the retention of IPF’s workforce and grow IPF’s business in Australia.
There is no certainty that any agreement will be reached or that any sale transaction will occur.
As negotiations in relation to the potential sale of IPF are ongoing, IPL is unable to commence the previously announced on-market share buyback program at this time. 1
1. As previously announced on ASX, IPL received shareholder approval to conduct an on-market buyback of up to $500 million worth of shares at its 2023 AGM held on 20 December 2023. IPL intends to undertake the buyback following completion of the previously announced on-market buyback of up to $400 million. IPL will only buy back shares at such times and in such circumstances as it considers appropriate.
For more information:
Investors
Geoff McMurray
General Manager Investor Relations
Tel: +61 3 8695 4553
Mobile: +61 418 312 773
geoff.mcmurray@incitecpivot.com.au
Media
Matthew Flugge
Group Vice President Corporate Affairs
Tel: +61 3 8695 4617
Mobile: +61 409 705 176
matthew.flugge@incitecpivot.com.au