Following the completion of the sale of its Waggaman, La, ammonia production complex to CF Industries Holdings Inc. on Dec. 1 (GM Dec. 1, p. 1), Incitec Pivot Ltd. (IPL) has confirmed its intention to return up to A$1 billion (approximately $657.4 million at current exchange rates) of the sale proceeds to shareholders (GM Nov. 17, p. 1).
CF purchased the 880,000 st/y Waggaman plant and related assets for $1.675 billion, subject to adjustments.
As previously announced, IPL intends to return the proceeds through a combination of a proposed on-market share buyback of up to A$500 million and a proposed distribution of up to A$500 that will be allocated between a pro-rata capital return and special unfranked dividend.
IPL said it will seek approval from shareholders at its upcoming annual general meeting on Dec. 20 for the company to buy back up to a maximum of 390 million shares (representing approximately 20% of its share capital) within a 12-month period, and for the company to undertake a pro-rata capital reduction.