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(2010-01-29 08:13)
Yara to sell Fosfertil shares
Oslo (2010-01-29): Yara has agreed with Vale to sell its shares in Fosfertil in Brazil for USD 785 million. Yara will also sell its stake in the Anitapolis phosphate rock project to Vale at the same time. Yara owns directly and indirectly 15.5 percent of Fosfertil following the acquisition of Fertibras in 2006. Fosfertil is the biggest producer of phosphate and nitrogen fertilizers in Brazil. The company owns three phosphate mines, two ammonia plants and finished fertilizer plants with an upgrading capacity of 3.4 million tons phosphate rock and 0.6 million tons ammonia per year.
The Anitapolis project where Yara owns 50%, is a project for developing a phosphate mine in Brazil and was acquired when Yara bought Adubos Trevo in 2000. The project is still at an early stage, but significant development work has been done.
"Brazil remains an important growth market for fertilizer and Yara, but a minority position in Fosfertil is not giving the optimal operational integration with Yara's fertilizer marketing in Brazil, a marketing activity that we will continue to develop. We see the offer from Vale as an attractive price for a non-integrated position," says Jørgen Ole Haslestad, President and CEO of Yara International ASA.
The sale is conditional upon Bunge selling their shares in Fosfertil to Vale, being subject to some precedent conditions.
The sale of the Fosfertil shares will give Yara a profit before tax of approximately USD 550 million and is expected to close in the second quarter of 2010. The sale of the Anitapolis shares will create a small profit.
Contact
Torgeir Kvidal, Investor Relations Telephone (+47) 24 15 72 95 Cellular (+47) 91 339 832 E-mail torgeir.kvidal@yara.com
Asle Skredderberget, Media Relations Cellular (+47) 41 44 36 10 E-mail asle.skredderberget@yara.com
Yara International ASA is the world's leading chemical company that converts energy, natural minerals and nitrogen from the air into essential products for farmers and industrial customers. As the number one global supplier of mineral fertilizers, we help provide food for a growing world population. Our industrial product portfolio includes environmental protection agents that prevent air pollution. Yara's global workforce of 8000 employees represents the great diversity and knowledge that enables Yara to remain a leading performer in the industry. This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
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