Incitec Pivot ends talks with Indonesia's Pupuk Kaltim for fertiliser unit sale (updated)

Dyno Nobel

10/07/2024 24:16

(Adds details in paragraph 2-6)
       July 10 (Reuters) - Australia's Incitec Pivot  IPL.AX 
said on Wednesday it has ended talks with PT Pupuk Kalimantan
Timur (Pupuk Kaltim)  PUPUK.UL , Southeast Asia's biggest urea
fertiliser maker, for the sale of its fertiliser business.
    Incitec, which produces and distributes fertilisers and
explosives, would now be able to commence its already announced
buyback of up to A$900 million ($606.69 million), it said in a
statement. 
        Earlier in May, the company 
    announced
     it was in advanced talks with Pupuk Kaltim to divest
Incitec Pivot Fertilisers, its fertiliser business, but did not
disclose any deal value.
  
        At the same time, the fertilisers producer said that,
due to the possible sale of its unit, it would pause its A$500
million share buyback, announced in December 2023.
  
        "Throughout the sale negotiations with PKT, we were
focused on completing a sale transaction in a timely manner to
allow us to commence our on-market buyback of up to A$900m,"
company CEO and managing director Mauro Neves said.
  
        Pupuk Kaltim did not immediately respond to a Reuters'
request for comment. 
  
        
  


($1 = 1.4835 Australian dollars)

 (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Alan
Barona)
 ((Rajasik.Mukherjee@thomsonreuters.com;))