The Orica Ltd (ASX: ORI) share price is in the spotlight after it announced the sale of its Minova business to Aurelius Group.
Orica was founded in 1874 as a supplier of explosives to gold fields in Australia. It has grown to be one of the world’s largest explosives, mining and infrastructure solutions providers.
Orica sells Minova
Today Orica announced that it has found a suitable buyer for Minova. Orica has been planning to sell the mining support business since May 2021.
The buyer of Minova is European based investment firm Aurelius Group (ETR: AR4). Orica will receive $180 million from the sale.
Management said that the sale of Minova aligns with its focused strategy on its four key business verticals of growth:
- Mining
- Quarry and construction
- Digital
- Mining chemicals
Orica Managing Director and CEO Sanjeev Gandhi said: “The sale of Minova is consistent with our refreshed strategy, which identified Minova as non-core to Orica.”
Management said that the sale is subject to regulatory approvals and other customary conditions. It expects the sale to be completed in the first quarter of the 2022 calendar year.
Final thoughts on the Orica share price
The market hasn’t reacted either way, with the Orica share price sitting flat at the time of writing.
Orica announced its intention to sell Minova in May, so the sale and sale price seems to be falling in line with market expectations.
