Dyno Nobel agrees to sell fertiliser plant, reaffirms FY26 guidance
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The news: Explosives group Dyno Nobel has agreed to sell its Phosphate Hill fertiliser plant in northwest Queensland to Mayfair Australia Corporation subsidiary Ryowa II GPS.
The numbers: Under the terms of the binding agreement, Dyno Nobel will receive a nominal upfront fee of $1 and a deferred consideration of up to $100 million, subject to certain conditions and certain performance hurdles being met.
Dyno Nobel will provide $125.9 million to support the future rehabilitation and remediation of Phosphate Hill.
The deal with Mayfair — a privately held energy and resources company headquartered in Brisbane — ensures the ongoing employment for Phosphate Hill’s 540 employees and contractors.
The context: Dyno Nobel expects nominal net present value positive cashflows from the deal, with asset retirement obligations offsetting tax benefits.
The group said the transaction concludes its separation with its fertilisers business, helping it achieve its strategic objective of transforming into a pure play global explosives leader.
Dyno Nobel also said that it remains on track to achieve full-year EBIT guidance of $460 million-$500 million.
The source: ASX
