• OCI Global (“OCI”) announces the successful completion of the sale of 100% of its holdings in Iowa Fertilizer Company LLC (“IFCO”) to Koch Ag & Energy Solutions (“KAES”)
• The value of the transaction was 3.6 billion US dollars on a cash-free, debt-free basis and followed a competitive process
• The closing represents an important milestone in OCI’s strategy to create value for shareholders.

AMSTERDAM, 29 August 2024 /PRNewswire/ — OCI Global (Euronext: OCI), a leading global manufacturer and distributor of hydrogen products, is pleased to announce the successful completion of the divestiture of 100% its indirect interest in its large-scale nitrogen fertilizer plant Iowa Fertilizer Company LLC in Wever, Iowa to Koch Ag & Energy Solutions, signed on December 18, 2023, following the required regulatory and shareholder approvals.

The closing represents an important milestone in OCI’s ongoing strategic value creation journey. The expected cumulative crystallization of approx. 9.5 billion US dollars The gross proceeds from the recently announced sales of Fertiglobe, IFCO and OCI Clean Ammonia provide OCI with significant flexibility in executing its capital allocation priorities, including gross deleveraging and returning a significant amount of capital to shareholders.

IFCO was the first nitrogen fertilizer factory to be built on a greenfield site. the United States for over 25 years and the largest private construction project in Iowa’s history and has created more than 3,500 new jobs during the construction period. Since commissioning in April 2017, the plant has created a core industry in the United States This reflects OCI’s continued investment in the ongoing development of the plant and in the distribution and logistics infrastructure of the surrounding region to support the Midwest agricultural industry. OCI is confident that under KAES’ leadership, IFCO will be well positioned for its next phase of growth.

For further information on the transaction, please see the press release dated December 18, 2023.

In a comment on the announcement: Nassef Sawiris, Executive Chairman of OCI said: “The successful completion of the IFCO transaction is the latest example of OCI’s relentless commitment to creating value for its shareholders. This milestone strengthens OCI’s reputation and track record as a successful developer, operator and investor. Looking ahead, we will continue to apply our unique knowledge, management expertise and entrepreneurial spirit to value-added projects.”

Ahmed El Hoshy, CEO of OCI said: “We are extremely proud of the remarkable achievements of OCI and the IFCO operations team in transforming a corn field into a world-class nitrogen plant and in revitalizing a core industry in the United States. KAES is well positioned today, both strategically and geographically, to leverage and diversify its extensive platform and create significant opportunities to drive the facility’s future growth. We have been impressed by the entire KAES team throughout this process and wish them the best of luck on their journey ahead.”

Advisor

Morgan Stanley & Co. International plc is acting as financial advisor to OCI in the transaction. Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor.

About Iowa Fertilizer Company

Iowa Fertilizer Company is a wholly owned indirect subsidiary of OCI, located in the Corn Belt of the Midwestern United States and is one of the newest and most innovative nitrogen plants in the world. OCI brought IFCO to market as a greenfield project in early 2013. The plant was one of the largest private sector construction projects in Iowa’s History and the first world-class nitrogen fertilizer plant in the United States in more than 25 years. IFCO supplies farmers in the Midwest and surrounding areas the United States a stable, high-quality and domestic source of fertilizer. IFCO also produces Diesel Exhaust Fluid, which helps reduce harmful vehicle exhaust emissions. IFCO has the capacity to produce 3.5 million tons of nitrogen fertilizer and Diesel Exhaust Fluid annually.

To OCI Generally

We are a global leader in nitrogen, methanol and hydrogen, driving the decarbonization of the energy-intensive industries that shape, feed and power the world. OCI’s manufacturing capacity spans four continents and includes approximately 17.2 million tons of hydrogen-based products annually, including nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid and melamine. OCI employs more than 4,000 people and is headquartered in Netherlands and is listed on Euronext in Amsterdam.

For more information about OCI, visit www.oci-global.com. You can also follow OCI on LinkedIn.

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