Oslo, 8 March 2020: Yara has signed a Share Purchase Agreement with Qatar Petroleum (QP) to sell its 25% share in Qatar Fertiliser Company (QAFCO) for USD 1 billion.
The transaction will mark the conclusion of a long-standing and highly value-creating partnership.
Since the establishment of the joint venture company QAFCO in 1969, the company has become the world's largest single-site urea producer, representing a significant percentage of the world's traded supply. Yara has owned a 25% share in QAFCO, with the remaining 75% share owned by Industries Qatar (IQ), which in turn is owned 51% by QP.
The parties have agreed on a purchase price of USD 1 billion for Yara's shares in QAFCO. The transaction is conditional on obtaining necessary local regulatory approvals and customary closing conditions.
"We are very proud of our partnership with Qatar Petroleum and Industries Qatar over the past half century, where we have succeeded in delivering a top quartile venture in every respect," said Svein Tore Holsether, President and Chief Executive Officer of Yara.
Following closing of the transaction, Yara will evaluate potential extraordinary dividends and/or share buy-backs, in line with its policy of maintaining a mid to long-term net debt/EBITDA range of 1.5-2.0.
Contact
Thor Giæver, Investor Relations
Mobile:Kristin Nordal, Media Relations
Mobile: (+47) 900 15 550
E-mail: kristin.nordal@yara.com
About Yara
Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger, we pursue a strategy of sustainable value growth, promoting climate-friendly and high-yielding crop nutrition solutions for the world's farming community and food industry.
Yara's ambition is to be the Crop Nutrition Company for the Future. We are committed to creating value for our customers, shareholders and society at large, as we work to develop a more sustainable food value chain. To achieve our ambition, we have taken the lead in developing digital farming tools for precision farming, and work closely with partners throughout the food value chain to improve the efficiency and sustainability of agriculture and food production.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry's only global crop nutrition company. With our integrated business model and a worldwide presence of around 16,000 employees and operations in over 60 countries, we offer a proven track record of responsible and reliable returns. In 2019, Yara reported revenues of USD 12.9 billion.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
