The Board of Directors of Yara International ASA, Oslo, on June 2 signed a demerger and a merger plan for the internal reorganization and transfer of Yara’s Clean Ammonia (YCA) business to a wholly-owned subsidiary of Yara.
The internal reorganization is being implemented as a preparatory step for a potential initial public offering (IPO) of Yara Clean Ammonia (YCA) on the Oslo Stock Exchange.
Yara said on May 4 that a potential IPO was under consideration (GM May 6, p. 30) and that it would initiate an internal process to organize YCA assets, contracts, etc., into dedicated YCA entities/subsidiaries that, for now, will remain under Yara’s ownership as a preparatory step in the event of a potential future IPO. The reorganization is not expected to trigger any material tax impact.