Dyno Nobel shares lift after Incitec Pivot sale complete, trading update
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More news: Dyno Nobel saw its shares lift in afternoon trade after announcing that the sale of fertiliser arm Incitec Pivot's distribution business to Ridley Corporation was finalised on Tuesday and that it anticipated a “strong underlying EBIT result in FY25”.
At 2:19pm AEST, shares in Dyno Nobel rallied 5.3% to $3.26.
The company also provided a business performance update and flagged the commencement of a $500 million share buyback program in mid-September. Group EBIT for FY25 is expected to be between $695 million and $715 million.
Dyno Nobel said it received $381 million in upfront proceeds at the completion of the fertilisers distribution business sale, although this is “subject to customary post-completion purchase price adjustments”.
Dyno Nobel said it expects to complete the sale of the Gibson Island ammonia and urea manufacturing site “in the coming weeks”. However, an expansion in the scope of remediation work and leaseback timing has increased related costs to about $110 million after tax from a previous estimate of $64 million after tax.
Dyno Nobel also completed its strategic review of fertilisers manufacturing and provided and update on other fertilisers sale transactions.
Ridley Corporation completes Incitec Pivot acquisition
The news: Animal feed producer Ridley Corporation has completed its acquisition of Incitec Pivot fertilisers distribution arm from Dyno Nobel.
The numbers: In May, Ridley announced a binding agreement to acquire Incitec Pivot distribution arm for $300 million as well as put/call options to later acquire the Geelong North Shore property for $75 million.
The context: Dyno Nobel had been looking to spin off its fertiliser arm from its core explosives business since July 2024. Ridley completed its acquisition of the Incitec Pivot distribution business on 30 September.
What they said: “The acquisition of Incitec Pivot Fertilisers establishes a new growth pillar for Ridley, reinforcing its position as a leading diversified Australian services company,” Ridley said in a statement to the exchange.
