UBS Limited acting on its own behalf and on behalf of ABG Sundal Collier Norge ASA, Enskilda Securities ASA and BMO Nesbitt Burns, yesterday exercised its over-allotment option in full and purchased a total of 31,944,256 Yara shares.
UBS Limited will pay Hydro the purchase price of NOK 41 per share for each Yara share purchased (less applicable commissions).
In relation to the Yara International ASA global offering, Hydro granted to UBS Limited an over-allotment option to buy 31.9 million shares in Yara (10 percent) exercisable for a 30-day period starting March 25, 2004. As a result of the exercise of the over-allotment option yesterday, the period that started on March 25 in which UBS Limited could effect transactions to stabilize or maintain the market price of the Yara shares has expired.
The total proceeds from the global offering of 63,888,512 Yara shares including the sale of 31,944,256 shares on March 25, 2004 and the full exercise of the over-allotment option are NOK 2.6 billion, which results in a pre-tax gain for Hydro of approximately NOK 530 million. The gain will be included in income from discontinued operations in first quarter 2004.
As a result of the sale of the over-allotment shares, Hydro now owns 0 Yara shares.