10 Apr 2008 - Yara International ASA has offered for sale 50 % of its shares in China Blue Chemical Ltd. The stake in the company was acquired in 2006 as a part of the IPO of China Blue Chemical and constituted a total of 9% of the total free float of the company. As part of this process China Blue Chemical and Yara also entered into a strategic investment agreement.
After a thorough process, both companies today consider the likelihood of realizing the intentions in this agreement as small. This partly reflects general market conditions and partly reflects the priorities of the two companies. The shares are therefore offered for sale to re-deploy funds in a way that enhances its overall growth strategy. Yara's strategic intent to increase its presence in China remains firm.
With regard to the remaining 50% of Yara's holding, these shares are tied up under a Share Purchase Agreement with a further lock-up period of 18 months.
The net gain from the sale is expected to be approximately USD 22 million.
After a thorough process, both companies today consider the likelihood of realizing the intentions in this agreement as small. This partly reflects general market conditions and partly reflects the priorities of the two companies. The shares are therefore offered for sale to re-deploy funds in a way that enhances its overall growth strategy. Yara's strategic intent to increase its presence in China remains firm.
With regard to the remaining 50% of Yara's holding, these shares are tied up under a Share Purchase Agreement with a further lock-up period of 18 months.
The net gain from the sale is expected to be approximately USD 22 million.
