Oslo (2010-11-09): Yara Australia Pty Ltd (Yara) has today begun legal action
against Burrup Holdings Limited (Burrup) and its wholly owned subsidiary, Burrup
Fertilisers Pty Ltd, after those companiesÂ blocked attempts to allow an
independent auditor to undertake a full inspection of Burrup's books.
Yara had sought to exercise its rights as a 35 per cent shareholder of Burrup
and carry out the audit but has been denied access by Burrup.
"Yara is disappointed with the denial of its rights under the Burrup
shareholders deed. We have followed due process in our efforts to gain access
and will not be deterred in exercising our rights to ensure Burrup is subjected
to appropriate levels of accountability," says CFO Hallgeir Storvik.
Yara believes the inspection is necessary to address a number of concerns
* The failure of Burrup to prepare and file financial reports;
* The high cost levels within Burrup which remain unexplained;
* The persistent lack of transparency and appropriate adherence to corporate
governance principles by the Company's Chairman and Managing Director, Mr.
* Serious allegations raised by the media of the misuse of Burrup funds and
the failure of the company to provide an adequate explanation.
"This action is being taken in the interests of Burrup and is designed to get to
the bottom of what exactly is happening inside the company. A situation where a
public company has failed to prepare and file a financial report within the time
prescribed is intolerable and we will vigorously pursue our rights. In the
meantime we would urge Burrup to cooperate in the process. Mr. Oswal's recent
attempts to frustrate, delay and divert attention from these matters of
substance needs to end", says Storvik.
Yara has lodged an application with the Federal Court of Australia seeking an
order requiring Burrup to allow the inspection.
Torgeir Kvidal, Investor Relations
TelephoneÂ (+47) 24 15 72 95
Cellular (+47) 91 339 832
Asle Skredderberget, Media Relations
Cellular (+47) 41 44 36 10
Yara International ASA is the world's leading chemical company that converts
energy, natural minerals and nitrogen from the air into essential products for
farmers and industrial customers. As the number one global supplier of mineral
fertilizers, we help provide food for a growing world population. Our industrial
product portfolio includes environmental protection agents that prevent air
pollution. Yara's global workforce of 7,600 employees represents the great
diversity and knowledge that enables Yara to remain a leading performer in the
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(Norwegian Securities Trading Act)
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Source: Yara International ASA via Thomson Reuters ONE