OCI announces second USD 3.6 bn sale in as many weeks: Nassef Sawiris-owned chemicals producer OCI Global has inked a binding agreement to sell its wholly-owned subsidiary Iowa Fertilizer Company (IFCo) to Koch Ag & Energy Solutions for USD 3.6 bn, OCI said in a statement (pdf). The sale marks the second exit by the Netherlands-based company in a few days time — OCI recently announced that it is offloading its entire 50% stake in Fertiglobe.

The rationale: Sale proceeds will help “significantly” reduce OCI’s debt, which stood at USD 2.3 bn at the end of 3Q 2023. The transaction will also allow the company to “deliver a capital return to shareholders” and explore green opportunities “building on its early mover lower-carbon ammonia and green methanol platforms.” The sale is expected to close next year.

ICYMI: OCI announced last week that it would offload its entire 50% stake in ammonia and urea producer Fertiglobe to Abu Dhabi’s oil giant Adnoc for USD 3.62 bn.

What this means? “This [IFCo sale], in combination with the divestment of its Fertiglobe stake implies OCI will be meaningfully net cash, with significant potential to both return cash to shareholders and fund decarbonisation projects,” Jefferies analysts said in a note cited by Reuters. Meanwhile, Bloomberg suggests that OCI is jumping on the trend of European firms dumping businesses in efforts to bolster their stock valuations.

It seems to have worked: Euronext-listed OCI’s shares jumped around 20.9% yesterday to close at EUR 24.32 per share.

Advisors: Morgan Stanley is OCI’s financial advisor on the transaction, while Cleary Gottlieb Steen & Hamilton is acting as legal advisor.

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