Dubai: The UAE energy company ADNOC can go ahead with buying out the 50% plus 1 share stake in its fetilizer joint venture Fertiglobe from OCI.
The acquisition - first announced in December 2023 - has 'received all required approvals'. It will go through formally on October 15.
"Ahead of closing, a block trade will be initiated today, October 11, 2024, and is expected to settle on Tuesday 15 October," said a statement.
It was in late October 2021 that Fertiglobe went for an IPO and list on ADX. More recently, it announced its H1-2024 dividend of Dh551 million, at 6.6 fils a share.
After October 15, ADNOC’s equity in Fertiglobe will increase to 86.2% while the free float traded on ADX remains at 13.8%.
Today, the stock is trading at Dh2.78 by 12pm, a gain of 12.1%, with investors clearly liking what they heard about the 50% stake purchase close. (October 10 was the record date for the dividend.)
Fertiglobe had revenues of $1 billion plus in the first six months. Its main line of business is as a nitrogen-based fertilizer producer.
