Australia and New Zealand Banking Group's long-running attempt to recover $900 million loaned to West Australian-based Burrup Fertilisers has been successful, after the two leading bidders for the group split the spoils.
The bank called in receivers PPB Advisory in December 2010 amid allegations of financial irregularities at the firm, founded by Indian entrepreneur Pankaj Oswal. As reported by The Australian Financial Review on January 21, Mr Oswal's Norwegian partner, Yara International, and US energy giant Apache Energy will take a 51 to 49 per cent split of the company.
Yara confirmed yesterday it had paid $US143 million ($134.7 million) to boost its 35 per cent stake to 51 per cent, valuing the total company – to be called Yara Pilbara – at about $US893 million. Yara and Apache, which supplies gas to the plant, are said to have come to an agreement to lift the price paid by the fertiliser plant for its feedstock.
The two partners will now proceed with an adjoining plant to make 330,000 tonnes annually of ammonia nitrate, used in explosives. It will compete with Wesfarmers' Perth operation.
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