Abu Dhabi-headquartered Fertiglobe, a leading nitrogen fertiliser producer in the Middle East and North Africa (MENA) region, has entered into an asset sale and purchase agreement to acquire the distribution operations of Wengfu Australia Pty Ltd.
The acquisition cost will be determined based on the net asset value, which includes fully recoverable working capital and liquid inventory, along with an estimated premium of USD 8 million.
Wengfu operates as a fertiliser distribution company, and the deal is anticipated to have a positive impact on Fertiglobe’s earnings per share.
Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, stated that the acquisition enhances the company’s reach to customers, particularly in Australia – one of the world’s fastest-expanding agricultural markets.
The deal will be funded through existing trade finance arrangements and will not affect Fertiglobe’s ability to distribute dividends. The company’s shareholders recently approved H2 2024 dividends totalling USD 125 million, bringing full-year dividends for 2024 to USD 275 million, representing a leading yield of over 5%.
Fertiglobe was established in September 2019 as a joint venture between OCI Global and ADNOC, with ADNOC currently holding an 86.2% share in the business.
