SYDNEY, AUSTRALIA: CI Resources Limited CIRL) has acquired 60% of the issued shares of Singapore-based fertiliser trading business Liven Nutrients Pte Ltd.
Liven Nutrients (wholly owned by Liven Agrichem) has been established by Mr Lee as a vehicle for bringing his fertilizer trading assets and operations together for the purposes of growing its business with CIRL as a majority joint venture partner.
The acquisition substantially grows CIRL’s capacity in supplying fertilisers to customers in the Asia-Pacific region. The affiliation with Liven Agrichem and Mr Lee will present an opportunity to grow the market appreciably with the potential to unlock significant joint value.
CI Resources will acquire a 60% shareholding in Liven Nutrients (being 3,000,000 ordinary shares) for US$3.0 million cash. CIRL will fund this transaction from cash reserves without raising debt or equity.
Under the terms of the joint venture agreement between the parties, CIRL has the right to appoint three directors to the Liven Nutrients’ Board with Liven Agrichem appointing two directors. CIRL and Liven Agrichem to jointly appoint an independent director who will be the Chair of the Liven Nutrients’ Board. CIRL’s 60% shareholding will deliver effective control of Liven Nutrients to CIRL.
CI Resources Ltd is a diversified industrial ASX-listed company, with a strong foundation on Christmas Island together with an increasingly global footprint.
The business, underpinned by wholly owned subsidiary PRL Group, has interests across Fertilisers, Global Supply Chain Logistics, Energy, Agri-Business, Facilities Management Services and Island Development.