Yara to sell 50% of holding in China BlueChemical

08 April 2008 14:18  [Source: ICIS news]

LONDON (ICIS news)--Norway’s Yara International has offered for sale 50% of its shares in Chinese fertilizer and methanol producer China BlueChemical, the company said in a statement on Tuesday.

 

The shares were being offered for sale to redeploy funds in a way that enhanced the company’s overall growth strategy, Yara said, adding that the net gain from the sale was expected to be approximately $22m (€14.1m).

 

When Yara acquired its stake in China BlueChemical it entered into a strategic investment programme, but now both parties consider the likelihood or realising the intentions of the programme as small.

 

This partly reflected general market conditions and partly reflected the priorities of the two companies, the statement said.

 

Despite selling these shares, Yara emphasised that its strategic intent to increase presence in China remained.

 

The remaining 50% of Yara’s holding is tied up under a share purchase agreement with a further lock-up period of 18 months.

 

Yara bought its stake in 2006 as part of China BlueChemical’s initial public offering (IPO) and constituted 9% of the total free float of the company.

 

Yara’s core business is the production and marketing of nitrogen fertilizers.

 

($1 = €0.64)

By: Rebecca Clarke
+44 20 8652 3214

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