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AMSTERDAM, December 18, 2023 /PRNewswire/ — OCI Global (Euronext: OCI), a global leader in the production and distribution of hydrogen products, today announced that it has reached an agreement for the sale of 100% of its stake indirect at its US nitrogen fertilizer plant Iowa Fertilizer Company LLC, located in Wever, Iowa, United States, to Koch Ag
Consummation of the transaction is subject to receipt of certain U.S. antitrust approvals and other customary closing conditions. The transaction does not require the approval vote of OCI shareholders. The transaction is expected to close during 2024.
Morgan Stanley
Strategic Review Update
OCI launched a multi-faceted strategic review in March 2023, with the goal of closing the discount to OCI’s intrinsic value and unlocking value for its shareholders. Today’s announcement marks an important step in achieving these goals, with the crystallization of $3.6 billion of value for OCI. The transaction is expected to result in a reduction in the holding company’s net debt and provide a return of capital to shareholders, allowing the remaining company to explore value-enhancing opportunities in the energy transition space, based on its low carbon green ammonia and methanol platforms.
Nassef Sawiris, CEO of OCI, commented: “Today’s announcement marks an evolutionary step on our path towards creating shareholder value and intensifying our efforts on lower carbon initiatives. IFCO was the first plant of nitrogen fertilizers built in the United States in more than 25 years. We are confident that, under the leadership of KAES, IFCO will be well positioned for its next phase of growth. Our strengthened balance sheet will support the acceleration of our strategy in the field of decarbonization projects, driving future growth and supporting the energy transition goals we share with many of our stakeholders, establishing us as a leader in the low-carbon space.”
Ahmed El Hoshy, CEO of OCI, said: “We are incredibly proud of IFCO’s extraordinary achievements since its launch in April 2017 and would like to thank all OCI and IFCO employees who have contributed to this remarkable success. We are exceptionally proud to have single-handedly built a world-class nitrogen facility and revitalized a key industry in the U.S. Today’s transaction is a testament to the team’s efforts and marks a natural evolution in the company’s path. OCI towards long-term sustainable value creation for all its stakeholders. I look forward to continuing the value creation journey and accelerating value-added projects focused on sustainability across our platform, including our blue ammonia project in Texas, scheduled for completion in 2025, and the continued growth of our low-carbon methanol business.”
Hassan Badrawi, Chief Financial Officer of OCI, said: “Combined with the recent sale of Fertiglobe, OCI is realizing $7.2 billion of tax-free gross cash proceeds. The resulting financial profile provides significant flexibility to achieve all of the company’s objectives. OCI, including exploring future growth opportunities that enhance value and enable the ability to significantly return capital to shareholders.”
A conference call for investors and analysts will be held today, Monday, December 18, 2023, at 2pm GMT / 9am ET / 3pm CET. Registration details are available here.
This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
About Iowa Fertilizer Company
Iowa Fertilizer Company is a wholly owned indirect subsidiary of OCI, located in the corn belt of the American Midwest and one of the youngest and most innovative nitrogen assets in the world. OCI launched IFCO to the market in early 2013 as a greenfield project. The facility was one of the largest private sector construction projects in Iowa history and the first global greenfield nitrogen fertilizer plant built in the United States in more than 25 years. IFCO provides farmers in the Midwest and across the United States with a stable source of high-quality, domestically produced fertilizers. IFCO also produces diesel exhaust fluid, which helps reduce harmful emissions from vehicle tailpipes. IFCO has the capacity to produce 3.5 million metric tons of nitrogen fertilizers and diesel exhaust fluid annually.
Since then, OCI has invested heavily in the continued development of IFCO and the surrounding region’s logistics and distribution infrastructure to support the Midwest agricultural industry. In addition to supporting farmers throughout the region, the facility has improved the economic prospects of southeastern Iowa. The facility was the largest private construction project in Iowa history, creating more than 3,500 jobs during the construction period and 260 permanent highly qualified positions.
About OCI Global
We are global leaders in nitrogen, methanol and hydrogen, driving the decarbonization of the energy-intensive industries that shape, fuel and drive the world. OCI’s production capacity spans four continents and encompasses approximately 16.8 million metric tons per year of hydrogen-based products, including nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid and melamine. OCI has more than 4,000 employees, is headquartered in the Netherlands and is listed on the Euronext stock exchange in Amsterdam.
Learn more about OCI through www.oci-global.com. Follow OCI on LinkedIn.
About Koch Ag
Koch Ag
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