The Incitec Pivot Ltd (ASX: IPL) share price is having a strong start to Wednesday’s session.
In morning trade, the ASX 50 share is up 8% to $3.00.
Why is this ASX 50 share racing higher?
Investors have been bidding this explosives and fertiliser company’s shares higher today following the release of an update on its separation plans.
These plans relate to the potential structural separation of Incitec Pivot Fertilisers and Dyno Nobel, with the intention of creating two industry-leading businesses.
This morning, the ASX 50 share advised that it is aware of speculation that it could now be interested in selling the fertilisers business instead of spinning it off.
Well, it seems that there’s no smoke without fire over at Incitec Pivot.
What’s happening?
According to the release, the company has received a number of approaches for the potential acquisition of its fertilisers business.
And while no decision has been made, the company advised that the Incitec Pivot board is assessing the potential sale of the business alongside the proposed demerger. This is to ensure that shareholder value is maximised.
No details have been provided in respect to who or what has been offered for the business. Management also warned that discussions are incomplete and there is no certainty that any agreement will be reached or that any sale transaction will occur.
It intends to keep the market informed of any material developments as, and when, required.
Incitec Pivot shareholders will no doubt be hoping that today’s gain is the start of a much-needed recovery for the ASX 50 share. Its shares were down almost 30% over the last six months prior to today’s session.
