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

Dyno Nobel

16/05/2024 24:09

(Adds details on potential sale and background in paragraphs
2-5)
       May 16 (Reuters) - Australia's Incitec Pivot  IPL.AX 
said on Thursday it was in advanced talks with Indonesian
state-owned fertiliser company PT Pupuk Kalimantan Timur (Pupuk
Kaltim)  PUPUK.UL  for the sale of Incitec's fertiliser
business.
    Incitec produces and distributes fertilisers and explosives,
with its fertiliser unit contributing around 17% to its fiscal
2023 operating earnings.
    The company expects the sale consideration to be in cash,
but did not provide any details about the deal value.
    Pupuk Kaltim, Southeast Asia's biggest urea fertiliser
maker, has said that it will continue to supply fertilisers to
the Australian market, retain the Incitec unit workers and grow
the business in Australia, Incitec said.
    Given the potential sale of the fertiliser unit, Incitec
said it would not commence the A$500 million share buy back
announced in December last year.

 ($1 = 1.4932 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru; Editing by Shailesh
Kuber and Shounak Dasgupta)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))