Qatar: Business Deal Yara to Sell 25 % Share in Qatar Fertiliser Company for One Billion Dollars
Yara has sold its share in the Qatar Fertiliser Company to Qatar Petroleum (QP). The remaining 75 % share is owned by Industries Qatar, which is owned 51 % by QP.
Oslo/Norway – Yara has recently signed a Share Purchase Agreement with Qatar Petroleum (QP) to sell its 25 % share in Qatar Fertiliser Company (Qafco) for one billion dollars.
The transaction will mark the conclusion of a long-standing and highly value-creating partnership.
Since the establishment of the joint venture company Qafco in 1969, the company has become the world’s largest single-site urea producer, representing a significant percentage of the world’s traded supply. Yara has owned a 25 % share in Qafco, with the remaining 75 % share owned by Industries Qatar (IQ), which in turn is owned 51 % by QP.
The parties have agreed on a purchase price of one billion dollars for Yara’s shares in Qafco. The transaction is conditional on obtaining necessary local regulatory approvals and customary closing conditions.
Following closing of the transaction, Yara will evaluate potential extraordinary dividends and/or share buy-backs, in line with its policy of maintaining a mid to long-term net debt/Ebitda range of 1.5-2.0.