Yara International ASA is delaying the planned initial public offering (IPO) of its clean ammonia unit until 2023 due to unfavorable market conditions, Yara International President and CEO Svein Tore Holsether said in a webcast presentation on Oct. 20. Yara announced in May that it was evaluating the division as an IPO (GM May 6, p. 36).
“From an operational performance point of view, we are ready, but you also have to look at the financial markets, and when the best timing is that we have full flexibility on when to push the button on the IPO, and as it looks at the moment, this is now more realistic in 2023,” said Holsether.
In August, the company reported the demerger and triangular merger of the Yara Clean Ammonia (YCA) business had been completed (GM Aug. 26, p. 1). Yara’s shareholders will have the same number of shares in the company, and the nominal value of the shares in Yara will be the same as before the demerger and triangular merger.
YCA was transferred to intermediary company Yara Clean Ammonia NewCo AS, and the intermediary was merged with YCA by way of a triangular merger. YCA operates the largest global ammonia network with 12 ships, and has access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world through Yara.
Holsether declined to comment on earlier reports that the company is eyeing the Nitrogen Fertilizer Unit-III (UFN-III) of Brazilian energy firm Petrobras SA (GM Aug. 5, p. 36). “In M&A, we don’t comment until such point where we have an agreement,” he said.
Last month, reports suggested a sale was on the verge of happening, but Petrobras said the rumors were “untrue” and that the sales process was still in the binding stage and had not reached the stage to receive proposals (GM Sept. 16, p. 30).