US phosphate producer Itafos commences strategic alternatives review process

HOUSTON (ICIS)–US phosphate producer Itafos announced that their board of directors has commenced a process to explore and evaluate various strategic alternatives in an effort to enhance shareholder value.

The board has formed a committee of independent directors who will work with advisors and management to consider potentially value-enhancing alternatives including the sale of the company, a merger with another partner, a recapitalisation or continued execution of the long-term business plan.

Itafos said CL Fertilizers Holding, the company’s largest shareholder, supports the process to review strategic alternatives.

It said there is no assurance that the review process will result in the pursuing of any transaction or that any alternative will be available.

There is no set timetable for completion and Itafos said it does not intend to disclose further developments until it determines it is appropriate or necessary.

“Over the last year, Itafos has taken decisive actions to strengthen the company, including by working to extend the life of the Conda mine, extending the maturity and reducing the cost of the company’s debt, improving its capital structure through significant deleveraging and strengthening the company’s management and board,” said Anthony Cina, Itafos chairman.

“We expect significant shareholder benefits from these initiatives and believe now is an opportune time to consider the full range of potential strategic alternatives to enhance value for all Itafos shareholders.”

Itafos currently has the Conda phosphate project in Idaho which produces primarily monoammonium phosphate (MAP), and the Arraias project in Brazil, which has single superphosphate (SSP) as its largest production output.

There is also the Farim phosphate mine project located in Guinea-Bissau as well as Santana, a phosphate mine and fertilizer plant project, and Araxa, which is a rare earth elements and niobium mine and extraction plant project, with both located in Brazil.