Incitec Pivot Limited announces completion of Waggaman facility sale

Incitec Pivot Limited (ASX: $IPL) has successfully completed the sale of its ammonia manufacturing facility in Waggaman, Louisiana, USA to CF Industries Holdings, Inc. The proceeds from the sale were received on the same day, marking a significant development for the company.

Executive Commentary on Waggaman facility sale

The completion of the sale of our Waggaman facility is a strategic move that aligns with our commitment to optimizing our portfolio and focusing on our core operations. Pending shareholder approval at the upcoming Annual General Meeting, we intend to return up to A$1bn of the sale proceeds to our shareholders through a combination of a proposed on-market share buyback and a distribution that includes a pro-rata capital return and special unfranked dividend. These initiatives reflect our dedication to delivering value to our shareholders while maintaining a disciplined approach to capital management.

Summary of Waggaman facility sale and future plans

Incitec Pivot Limited (ASX: $IPL) has successfully concluded the sale of its Waggaman facility, signaling a strategic shift in its operational focus. The company intends to allocate up to A$1bn of the sale proceeds to benefit its shareholders, subject to approval at the upcoming Annual General Meeting. This includes plans for an on-market share buyback and a distribution comprising a pro-rata capital return and special unfranked dividend. The proposed resolutions and details have been communicated to shareholders, emphasizing the company's commitment to transparent and shareholder-focused decision-making. The completion of this sale underscores IPL's dedication to optimizing its asset base and pursuing value-enhancing opportunities. Looking ahead, the company aims to continue delivering sustainable value to its shareholders while maintaining a prudent approach to capital allocation and management.