Venezuela’s Pequiven reaches agreement to buy FertiNitro shares

23 November 2011 02:41  [Source: ICIS news]

HOUSTON (ICIS)--Venezuela’s Pequiven launched a tender offer for shares of the nationalised FertiNitro urea and ammonia project following an agreement with bondholders, the state-run chemical producer said on Tuesday.

Pequiven said the tender offer follows successful talks with holders of about 79% in aggregate principal of the FertiNitro secured bonds, which are due in 2020. The outstanding principal of the bonds was $238m, Pequiven said.

Bondholders would receive $1,049.70 (€776.78) per $1,000 that was originally paid, Pequiven said.

Venezuelan President Hugo Chavez announced the expropriation of FertiNitro in October 2010.

The FertiNitro facility has an ammonia production capacity of 1.3m tonnes/year and a urea capacity of 1.5m tonnes/year, according to ICIS plants and projects.

Before the nationalisation, Pequiven and US-based Koch Industries each owned 35% of the joint venture.

Pequiven said it reached a “lock-up agreement” with bondholders. Such an agreement typically prohibits the underwriters and insiders of a company from selling any shares of stock for a specified period of time, in order to ensure stability in the stock price.

($1 = €0.74)

By: Brian Ford
+1 713 525 2653

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