Yara sells minority stake in Russian fertilizer businessman

Yara sells minority stake in Russian fertilizer to businessman

1:29 PM, 4th August 2011
Yara sells minority stake in Russian fertilizer to businessman
Jorgen Ole Haslestad, President and CEO, Yara International ASA.

 

OSLO, NORWAY: Yara will sell its indirect holding in the Rossosh NPK plant in Russia for a total consideration of $390 million (NOK 2.1 billion). In addition Yara has received net dividends of $64 million (NOK 350 million) ahead of the transaction.

Yara controls 30 per cent of OAO Minudobreniya, a fertilizer plant in Rossosh in the Voronezh region of Russia. The position is owned through a 37.692 per cent interest in Yaibera Holdings Ltd, which owns 79.59 per cent in OAO Minudobreniya. Yara and the other Yaibera shareholders have decided to sell their shares to Laguz Management Ltd, a company controlled by Arkady Rotenberg.

The Rossosh plant has an annual production capacity of approximately one million tonne of ammonia, one million tonne of NPK and 500 kilo tonne of ammonium nitrate.

“This transaction illustrates the value of nitrophosphate NPK and nitrate capacity which delivers products with superior yield and environmental performance compared with commodity fertilizers. This minority position does not give the optimal integration with Yara’s global marketing system. The offer represents an attractive price for a non-integrated position,” said Jorgen Ole Haslestad, President and CEO, Yara International ASA.

The sale of the Yaibera shares is expected to give Yara an income before tax of approximately NOK 1.4 billion, to be booked in the third quarter.

(C) WOC News

 

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