Incitec Pivot taps Indonesian firm for Australia fertiliser unit - AFR (updated)

Dyno Nobel

02/08/2023 05:35

(Adds share moves in paragraph 4, context in paragraphs 2, 3
and 5)
       Aug 2 (Reuters) - Incitec Pivot  IPL.AX  has tapped
Indonesia's Pupuk Kaltim as the preferred buyer of its
Australian fertiliser business in a deal that could be worth
about A$1.5 billion ($989 million), the Australian Financial
Review (AFR) reported on Wednesday.
    The company has arranged site trips and due diligence for
Pupuk Kaltim in recent days, the newspaper reported, citing
sources familiar with the matter.    
    Incitec Pivot said in mid-July that it had received several
approaches for the fertiliser business, and that an assessment
of a potential sale was being considered.
    Shares of Australia's biggest fertiliser producer rose as
much as 2.6% to A$3.110 per dollar by 0415 GMT, hitting their
highest since May 16.
    Investors have pushed back in recent past against its plan
to demerge its explosives manufacturing business Dyno Nobel
through a separate listing to accelerate growth in the
explosives and fertiliser segment. 
    Pupuk Kaltim is an Indonesian state-owned enterprise, which
specialises in urea and ammonia production.  
    Both Incitec Pivot and Pupuk Kaltim did not immediately
respond to Reuters' requests for comment. 
    ($1 = 1.5165 Australian dollars)

 (Reporting by Archishma Iyer in Bengaluru; Editing by Dhanya
Ann Thoppil)
 ((Archishma.Iyer@thomsonreuters.com;))