Incitec Pivot shares tumble after ending sale talks
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More news: Incitec Pivot shares dived at market open on the ASX after the fertilisers and explosives group ended negotiations over the potential sale of its fertilisers business.
Shares were down 4.8% to $2.76 by 10:30am AEST. Over the past 12 months its shares have risen 1.65%.
Incitec Pivot ends talks over sale of fertilisers business
The news: Incitec Pivot has ceased negotiations with Indonesia's state-owned industrial group PT Pupuk Kalimantan Timur (PKT) over the potential sale of its fertilisers business.
The numbers: The Melbourne-based fertilisers and explosives group said that ending negotiations, first announced in May, means it is now able to commence its previously flagged share buyback program of up to $900 million.
The context: Incitec Pivot said the decision to end talks followed "careful consideration" on how to maximise value for shareholders while balancing the risks of completing the transaction in a reasonable timeframe.
The company said it would continue to manage its fertilisers business and its explosives manufacturing subsidiary, Dyno Nobel, separately.
What they said: Incitec Pivot's CEO and managing director Mauro Neves said: "Throughout the sale negotiations with PKT, we were focused on completing a sale transaction in a timely manner to allow us to commence our on-market buyback of up to $900 million".
"We have determined we are unlikely to achieve this outcome with PKT in an acceptable timeframe, and as a result we made the decision to cease negotiations with them," Neves said.
The source: ASX announcement
