Dyno Nobel (ASX:DNL) agreed to sell its Phosphate Hill fertilizer business to Mayfair Australia subsidiary Ryowa II GPS for a nominal consideration of AU$1, according to a Monday filing with the Australian bourse.

The sale also involves a deferred consideration of up to AU$100 million, subject to certain conditions and meeting performance hurdles, the filing said.

The transaction is expected to be completed in the fiscal third quarter, per the filing.

Dyno Nobel shares fell 7% in morning trade on Monday.