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NEWS: Abu Dhabi’s Fertiglobe to acquire Wengfu Australia’s distribution assets
NEWS: Abu Dhabi’s Fertiglobe to acquire Wengfu Australia’s distribution assets
About this update from Fertiglobe Plc
First published: 12-May-2025 10:31:26Staff WriterAbu Dhabi-based Fertiglobe, one of the largest nitrogen fertilizer producers in the Middle East and North Africa (MENA), has signed an asset sale and purchase agreement to acquire the distribution assets of Wengfu Australia Pty Ltd.The purchase price will be based on the net asset value, consisting of fully recoverable net working capital and liquid inventory, plus a premium of approximately $8 million.Wengfu is a fertilizer distribution business and the transaction "is expected to be earnings per share accretive" to Fertiglobe.Fertiglobe CEO Ahmed El-Hoshy said the acquisition boosts its access to customers as Australia is one of the world’s fastest-growing agricultural regions. The acquisition will be financed through pre-arranged trade facilities, with no impact on Fertiglobe’s dividend distribution capability. Its shareholders recently approved H2 2024 dividends of $125 million, taking total 2024 dividends to $275 million, implying an industry leading yield of +5%.Fertiglobe was formed as a partnership between OCI Global and ADNOC in September 2019. ADNOC owns 86.2% stake in the company.(Writing by Brinda Darasha; editing by Daniel Luiz) [email protected] Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.