ICL buys stake in Chinese chemicals co for $250m

Israel Chemicals

Yunnan Yuntianhua is the parent company of YPC, Israel Chemicals phosphates joint venture in China.

Israel Chemicals (TASE: ICL: NYSE: ICL) (ICL) has completed a 15% equity investment totaling $250 million in Yunnan Yuntianhua Co. Ltd. (YTH). YTH is the parent company of ICL’s phosphates joint venture partner in China, Yunnan Phosphate Chemicals Group Corporation Ltd. (YPC), China’s leading phosphate producer.

YTH, a Shanghai Stock Exchange listed company (CH:600096), issued ICL 199,249,088 new shares through a private placement for 8.24 RMB/share. The investment was approved by China’s Ministry of Commerce and its Securities Regulatory Commission.

As a strategic investor in YTH, ICL will nominate 2 out of 11 YTH board members, one of whom will be Stefan Borgas, ICL’s president & CEO.

ICL said that its investment in YTH is part of the formation of a phosphate joint venture by ICL and YTH and will deepen their strategic alliance. ICL takes the lead in managing the operation of YPH joint venture's business which has become a fully operating business unit of ICL, and whose results will be consolidated into ICL’s financial reports. The joint venture is expected to provide ICL with a platform to penetrate growing Asian specialty phosphate markets.

Over the next five years ICL and YTH plan to build specialty plants and triple the JV’s white phosphoric acid (WPA) capacity. The partners have also established a phosphate R&D platform in Kunming (Yunnan province) which is focused on developing next-generation phosphate-based products and process technologies for the YPH JV and their respective businesses.

Borgas said, “We are pleased to finalize our strategic investment in YTH which is a key element of our strategic alliance with Yunnan Yuntianhua. This investment deepens our strong working relationship with YTH, and we believe that our representation on several YTH governing bodies will help facilitate our efficient management of the YPH JV.”

Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
Your name
Please insert your name
Content
Hyperlink in a new window Hyperlink Right Left underline italic bold Bulleted List Ordered List Face1 Face2 Face3 Face4 Face5 Face6
Your comment

Thanks
You comment was recieved and soon will be published.
In posting comments, I agree to abide by the Terms of Use
Globes encourages lively and frank debate, but posts that the editors consider merely abusive or otherwise inappropriate will be removed. Report inappropriate content
Thank you for posting your comment, which will be reviewed for publication.
Loading Comments...load
Load more comments
Israel Chemicals
Israel Chemicals
Twitter Facebook Linkedin RSS Newsletters גלובס MAD CONFERNCE