Dyno Nobel (ASX:DNL) has finalised its strategic exit from the fertiliser sector by entering into a binding agreement to sell its Phosphate Hill asset to Ryowa II GPS, a subsidiary of Mayfair Australia.
The divestment completes a broader separation process that included the previously finalised sale of the Perdaman offtake agreement to Macquarie Group (ASX:MQG).
The move transforms Dyno Nobel into a dedicated global leader in the explosives industry.
The financial structure of the deal involves a nominal purchase price of $1, with potential deferred consideration of up to $100 million contingent upon the asset meeting specific performance hurdles and audited earnings targets.
As part of the transition, Dyno Nobel will provide $125.9 million to fund Asset Retirement Obligations, covering future rehabilitation and remediation costs for the North-West Queensland site.
Starting April 1, Mayfair will assume all economic risks and benefits, including responsibility for capital expenditure and upcoming operational turnarounds.
The transaction ensures the ongoing employment of approximately 540 staff and contractors, maintaining operational continuity for the regional economy.
Company leadership noted that the explosives business continues to show strong momentum, remaining on track to meet its FY26 earnings guidance.
By offloading the fertiliser business, the company achieves a clean strategic break, allowing management to focus resources entirely on its high-performing
explosives operations while stabilising its balance sheet through the transfer of long-term liabilities.
At the time of reporting, Dyno Nobel's share price was $3.04.